VIAVISIONMay 2015 MODERN TECHNOLOGY. With the Diesel into the Future SHAPING THE FUTURE OF MOBILITY

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1 VIAVISIONMay 2015 VOLKSWAGEN SHAPING THE FUTURE OF MOBILITY MODERN TECHNOLOGY With the Diesel into the Future

2 DIESEL TECHNOLOGY VIAVISION Contents The Modern Diesel is a High-Tech Product 2 Full Speed Ahead 2 Clean Air Well Filtered 6 An Important Component 8 Imprint Edited by Volkswagen Aktiengesellschaft Konzernkommunikation Brieffach 1972, 3836 Wolfsburg, Germany Phone: +9 (0)5361/ Fax: +9 (0)5361/ V.i.S.d.P. (Person responsible according to the German press law) Stephan Grühsem, Leiter Konzernkommunikation; Pietro Zollino, Leiter Produktkommunikation Marke Volkswagen Editorial staff Stefanie Huland, Michaela Möller Volkswagen: Michael Franke, Anika Hannig, Hans-Georg Kusznir, Tonio Vakalopoulos Contact: redaktion@viavision.org Published by Verlag Rommerskirchen GmbH & Co. KG Mainzer Straße 16-18, Rolandshof 532 Remagen, Germany Phone: +9 (0)2228/ Printed by L.N. Schaffrath GmbH Marktweg 2-50, 7608 Geldern, Germany Cover Graphics: designed by Freepik.com All images in this issue are approved for reprint, citing VIAVISION as their source. Petrol The Modern Diesel is a Dr Heinz-Jakob Neußer and Dr Thomas Steg Natural gas, electric mobility, hydrogen: there is an increase in low-emission drives and other alternative drives to diesel. Does diesel still have a future? Dr Heinz-Jakob Neußer: The short answer is yes. The modern diesel is a hightech product: efficient, economical and lively. Its market share of over 5o percent in Europe reflects its success. Our customers appreciate its durability and reliability. And we are constantly working hard on improving this technology further. As regards air quality, the call for prohibiting diesel cars from accessing large European cities grows louder... Dr Thomas Steg: Since the introduction of the Euro 1 emissions limit in 1995 the permitted levels for nitrogen oxides has been reduced by 87 percent, and for particles by about 97 percent. Thanks to modern exhaust after treatment, diesel particulate emissions are practically insignificant. We have also achieved a great deal in the reduction of nitrogen oxide emissions, thanks to NO x catalysts and SCR systems with AdBlue. A modern Euro 6 diesel emits 6 percent less NO x than a Euro diesel it is in no way comparable to an old Euro 1 unit. However, the market share of Clean Diesel is still low. Steg: Right. But the auto industry has done its job, now it s time to get these cleaner engines on the road as quickly as possible. In terms of fleet renewal, political support is needed. Why does the automotive industry defend diesel so persistently? Petrol motors are also efficient and viable engines. Full Speed Ahead The diesel in Germany Quiet, powerful and fuel efficient: the diesel has strengthened its position in the auto market in the last two decades. Today it presents itself as the main alternative to petrol. Nearly a third of all vehicles in the fleet have a self-igniting engine. New car registrations (in percent) 88.8 Total: 3,036, Diesel Other drives Since 1990, the number of newly registered passenger cars with diesel engines has quadrupled. Last year, almost half of all newly registered passenger cars were equipped with a diesel engine. The petrol engine s share has been declining. Petrol Total: 3,00,783 Diesel Other drives 2

3 May 2015 DIESEL TECHNOLOGY High-Tech Product on the Significance of Diesel Technology Steg: Absolutely, but diesel is essential to achieving the required climate targets because of its comparatively higher efficiency. A single figure illustrates this: CO 2 emissions in Germany in 2o1 were at grams per kilometre instead of 138. without diesel. What does diesel mean to Volkswagen? Neußer: We have invested a lot in engineering to develop the diesel engine into one of today s most advanced combustion engines. How advanced does diesel technology have to be if, even in the traditionally diesel-skeptical United States, Minister of Transport Ray La- Hood has as far back as 2o11 praised Clean Diesel emphatically, because it was just right for environmental and climate protection in the US. Dr Heinz-Jakob Neußer (top), Board Member of Management for the Volkswagen Brand and Head of Powertrain Development. Dr Thomas Steg is General Representative for Global Government Affairs of the Volkswagen Group. Diesel vehicle fleet Euro 1 Euro 2 Euro 3 Euro Euro 5 Euro 6 Euro 6 35,62 As of September 1st, 2015, the Euro 6 emissions standard for all newly registered vehicles is mandatory. The limit for nitrogen dioxide emissions for diesel vehicles will be lowered from 180 to 80 milligrams per kilometre. This value can only be achieved with the use of new technologies (see page 6). 13,806,836 35,62 of the 13.8 million diesel-powered vehicles in Germany meet the requirements of the Euro 6 emissions standard. This represents 3.2 percent of the total fleet. Sources: Federal Motor Transport Authority, as of January

4 DIESEL TECHNOLOGY VIAVISION Clean Air The Diesel in the City Transport, industry and agriculture emit nitrogen oxides and particulate matter. The impact of these emissions on humans and the environment is called immission. Legislation regulates the maximum levels of emissions and immissions. The most important directive for the protection of air quality, and thus also of people, is known as the Ambient Air Quality Directive (2oo8/5o/EC). The relation between emissions and immissions Nitrogen oxide (NO x ) Nitrogen oxide is a collective term for various gaseous compounds. The two main ones are nitrogen dioxide (NO 2 ) and nitrogen monoxide (NO), the first is particularly burdensome for the environment. These compounds are also called reactive: in combination with hydrocarbons, they are responsible for the formation of ground level ozone during summer. Nitrogen oxides are produced as a byproduct of combustion processes, their main sources are combustion engines and furnaces. Particulate matter (PM 10 ) Particulate matter is a mixture of particles that are released, for example, in combustion processes. The particles are distinguished by size: the term PM 1o (particulate matter), for example, combines all particles with a maximum diameter of ten micrometres (µm). Industry, heating plants, cars, stoves and residential heating systems as well as agriculture are the main producers of particulate matter. Emissions Transmission Immissions

5 May 2015 DIESEL TECHNOLOGY Air Quality in Germany The quality of the air, in terms of immissions, in Germany is monitored at approximately 5o stations. These stations can be found in three different locations: the inner city close to traffic, meaning near a major road, within the city in general, and rurally. The focus lies, above all, on the measurement of particulate and nitrogen oxide emissions: diesel is said to be one of the main sources of nitrogen oxide. Thanks to the particulate filters, fitted as standard, particulate pollution in diesel is now no longer an issue; in the last 2o years it has been reduced tremendously. Although individual locations close to traffic show an increased load, the set annual limit of o micrograms per cubic metre of air is not exceeded. Improvement is still needed for nitrogen dioxide, one of the nitrogen oxides: the majority of traffic-orientated stations record an annual average well above the limit of o micrograms. Current values* (in micrograms per cubic metre) Close to traffic Inner-city * The annual mean values given here are classified as provisional by the German Federal Ministry for the Environment and are valid for the year 201. Rural PM 10 : 25 /0 NO 2 : 3 /0 PM 10 : 19 /0 NO 2 : 21 /0 PM 10 : 16 /0 NO 2 : 10 /0 NO 2 pollution and low emission zones 3 3 The nitrogen oxide map (right map) shows that the average emission levels ls are below the permitted limits. In areas of intense traffic such as cities there are, however, er, notable upwards outliers. The municipalities (left panel) try to counteract locally, for example by introducing environmental zones. Only vehicles with low particulate emissions and a corresponding badge may drive there. Sources: Map NO2: Created in 2013 by the German Federal Ministry for the Environment with data from the regional and federal measuring networks; Map of environmental zones: the German Federal Ministry for the Environment, as of February Diesel cars conforming with the Euro or Euro 3 norm, with particle filter or better; Petrol cars in accordance to the Euro 1 norm or better Diesel in accordance to the Euro 3 or Euro 2 norm with particle filter NO 2 in µg/m 3 : 0-5 > 15 > 10 > 15 > 20 > 25 > 30 > 5 > 35 > 50 > 0 > 55 > 60 5

6 DIESEL TECHNOLOGY VIAVISION Well Filtered The Exhaust System in Modern Diesel Cars 2o years ago, the EU made the first Euro 1 emission standard mandatory. Since then, the permitted level of emissions has declined continuously. Technology has needed to develop correspondingly: a Euro 6 diesel from Volkswagen s modular transverse matrix is not comparable to a two decade old diesel in terms of efficiency and emissions. Important components for the powertrain of modern diesels in addition to the diesel particulate filter which was already introduced across the board in 2oo2/2oo3 are two alternative systems for exhaust gas after treatment: the NO x storage catalyst and selective catalytic reduction (SCR). The structure of an exhaust system with a NO x storage catalyst The LAMBDA SENSOR controls the right balance of air and fuel mixed in the regeneration phase of the NO x storage catalyst. The NO x STORAGE CATALYST reduces the nitrogen oxides contained in the exhaust gas in two steps. During the loading phase, nitrogen oxides are stored in the catalyst. These are then chemically converted into nitrogen in the regenera- tion phase. To securely perform and monitor these operations, complex control strategies and different sensors are required. The DIESEL PARTICULATE FILTER (DPF) filters the soot particles from the exhaust gases of diesel engines. The soot particles are deposited on the filter. The accumulated soot in the filter is burned in the regeneration phase. 6

7 May 2015 DIESEL TECHNOLOGY The structure of an exhaust system with SCR The SCR DOSING MODULE is located behind the oxidation catalyst. Via a dosing line, the AdBlue urea solution flows from the tank to the dosing module and is injected into the exhaust in the required amount prior to reaching the SCR catalytic converter. The dosing module is fitted with a cooling water jacket, in order to protect the valve and the electrical connection from overheating. The catalytic coating of the OXIDATION CATALYST CONVERTER converts the hydrocarbons and the carbon monoxide contained in the exhaust gas into water vapor and carbon dioxide. It also supports the SCR function of the downstream particle filter. The DIESEL PARTICULATE FILTER WITH SCR COATING (SDPF) integrates two functions into one component. The filtering of soot particles is carried out in the same manner as in the conventional diesel particulate filter (DPF). The SDPF is also coated with an SCR catalyst, in which the dosed AdBlue reduces the nitrogen oxides contained in the exhaust gas to nitrogen. By combining these two functions of both the DPF and SCR catalyst, located very close to the engine, the best possible function, with respect to future emission requirements, is guaranteed. The MIXER is integrated into the transition hopper. The exhaust stream and the dosed AdBlue are mixed here. AdBlue AdBlue is a synthetically produced, 32.5 percent urea solution, which converts the nitrogen oxide exhaust component into nitrogen and water. The operating solution is stored in an auxiliary tank and must be refilled as needed. 7

8 DIESEL TECHNOLOGY VIAVISION An Important Component The Importance of Diesel for Political and Economic Climate Goals The EU wants to reduce emissions of greenhouse gases by o percent by 2o3o. Consequently, the average CO 2 emissions of a new car have been limited since 2o12: from 2o2o manufacturers must comply with a limit of 95 grams of CO 2 per kilometre in the EU a highly ambitious goal which cannot be achieved without diesel. Currently, new car fleet emissions average grams of CO 2. The German Association of the Automotive Industry (VDA) estimates that this value for a fleet that consisted only of diesel vehicles would be 125 grams of CO 2 per kilometre. In reverse, the value of a pure petrol fleet would be 138. grams of CO 2. A purely diesel fleet, by this calculation, would save 6o5,ooo tons of CO 2 annually (see graphics). CO 2 emissions of the German new car fleet 190 In grams CO2 per kilometre ,5 Prozent * The simulation is based on an average annual mileage of 15,000 kilometres and 3.1 million newly registered cars Petrol only* Diesel only Emissions during real-life consumption Automobile manufacturers must comply with the requirements for newly registered vehicles in terms of air quality too. They will be supplemented by a new law in two years: in addition to limits in the test cycle, in the future there will also be limits during the real-life operation of vehicles for particulate and NO x emissions. The automotive industry explicitly supports the introduction of what is known as Real Driving emissions legislation. However, the EU Commission plans to implement them for all new vehicles from 2o18 giving the necessary technical development and adaptation times this is an almost impossible challenge for car manufacturers. The manufacturers also want a clear definition of the test constraints, so that the results cannot be distorted by abusive driving. Technology and Fuels Compared Petrol Diesel * The value applies to Euro 6 engines Energy density in kilograms per cubic metre 8,760 9,800 Heating value per volume unit in kilowatt-hours per cubic metre CO 2 in kilograms per litre 89 CO 2 emission in grams per kilometre * TDI The slightly higher CO 2 formation potential of diesel fuel compared to petrol is offset in terms of energy density and calorific value. In combination with efficient technology, the modern diesel offers low emissions: the Golf BlueMotion 1.6 litre TDI engine emits 89 grams of CO 2 per kilometre, making it the lowest CO 2 option in the Golf range. 8