IMPORTANT INFORMATION ABOUT YOUR L TDI Volkswagen GENERATION 3 ENGINE

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IMPORTANT INFORMATION ABOUT YOUR 2015 2.0L TDI Volkswagen GENERATION 3 ENGINE

Contents About this Booklet... 1 Overview... 2 Software and Hardware Updates... 3 Changes in Maintenance Schedule...7 Emission Limits.......7 Extended Emissions Warranty Coverage... 9 Customer Notices...12 IMPORTANT WARRANTY INFORMATION KEEP IN GLOVE BOX OR OTHER LOCATION FOR FUTURE REFERENCE

About This Booklet On September 18, 2015 the Environmental Protection Agency (EPA) and California Air Resource Board (CARB) informed Volkswagen that Model Year 2009-2015 2.0L TDI vehicles do not comply with federal and California emissions standards. The information in this booklet represents a step forward as we continue on the road to making things right for you. As part of VW's settlements with the United States Department of Justice (DOJ), Environmental Protection Agency (EPA), the California Air Resources Board (CARB), the California Attorney General s Office (CAAG), the Federal Trade Commission (FTC) and Class Counsel we are informing you that an emissions modification is now available for your Model Year 2015 2.0L TDI. The emissions modification for your vehicle has been approved by the EPA and CARB. The following pages outline the emissions system updates that are now available for your Model Year 2015 Volkswagen 2.0L TDI and the extended emissions warranty coverage that will be provided for vehicles that receive the modification. You can also read about the impact these updates will have on your driving experience as well as instructions on maintaining your vehicle post-modification. We encourage you to carefully review the information in this booklet, and if we can be of further assistance, please let us know. For questions about any of the material included in the booklet please visit http://www.vw.com/owners-recalls/ or contact VW Customer CARE at 800-822-8987. 1

Overview Federal and California laws prohibit the use of defeat devices and the use of engine software designed to reduce the effectiveness of your vehicle s emission control systems. The EPA and CARB have determined that Volkswagen vehicles equipped with a 2.0L 4-cylinder TDI engine do not comply with these laws. Through the agreed upon emissions modification, VW will remove the software that reduced the effectiveness of your TDI s emission control system and will install new emission control software and hardware designed to function effectively in all normal driving conditions. 2

Software and Hardware Updates EPA and CARB have approved a two-part emissions modification plan. Phase 1, is ready to start now. Phase 2 will become available in early 2018. Both parts of the plan are necessary for the emissions modification to be effective, and vehicle owners who choose the modification are expected to complete both phases. Volkswagen is also required to offer a buyback of your vehicle or terminate your existing lease as an alternative to the emissions modification, under settlement agreements reached with the DOJ, EPA, CARB, CAAG, FTC and Class Counsel. It is your choice whether to select the buyback/lease termination or emissions modification. Please visit VWCourtSettlement.com to learn more and to file a claim. For owners selecting the emissions modification, eligibility, scheduling information, and details on logistics can be found at www.vwcourtsettlement.com, or by contacting us at 844-98-CLAIM. Emissions Modification Phase 1: During the first part of the modification Volkswagen will remove the software that reduced the effectiveness of your TDI s emission control system and replace it with software that directs your vehicle s emission controls to function effectively in all normal driving conditions. The emissions modification will change the way your car s engine and emission control systems interact. This will affect technical functions under some operating conditions, for example when the vehicle is started for the day. No significant changes to key vehicle attributes are expected, including fuel consumption, reliability, durability, vehicle performance, drivability, or other driving characteristics. 3

The new software will affect your car in the following ways: Engine sound may differ from your vehicle s prior operation. Although unlikely, the engine tone may vary slightly after the emissions modification is complete. This will not result in any noticeable change in the driving characteristics of your vehicle. An update to the engine cooling fan operation will allow your vehicle to cool more efficiently and may alter the sound that the vehicle fan makes once the engine has been turned off. This update is not related to the emissions issue, and is addressed in the spirit of continued vehicle performance improvement. Sport Mode Changes While driving in sport mode the automatic transmission will shift earlier at low accelerator positions for improved driving comfort, resulting in lower engine speeds at constant driving. Improved Vehicle Drivability Vehicles with automatic transmissions will exhibit improvement in throttle response, a smoother acceleration and improved driving experience. Diesel Exhaust Fluid (DEF) consumption DEF consumption for your vehicle may increase. The amount of the increase will vary. Some drivers will experience no change, but others will use 1% - 14% more DEF on average (also known as AdBlue ). The amount of the impact will depend on driving style and other factors. This means some drivers will need to refill your DEF tank more frequently. 4

Software and Hardware Updates (Continued) High Altitude Shift Patterns - For Golf Automatic Transmission vehicles, the shifting behavior has been adapted to run with slightly higher engine speeds at high altitudes. On-board diagnostic (OBD) system changes Your vehicle s OBD system will be modified and certain emission thresholds within the OBD system will be adjusted. These thresholds set new malfunction detection limits that may be above what inspection and maintenance regulators are familiar with and may reduce the effectiveness of the OBD system in detecting malfunctions. We don t expect you will have any issues with the ability of your vehicle to pass the inspection and maintenance test as a result of these changes. The extended warranty coverage outlined in this booklet offers additional protection if your vehicle is still covered under warranty at the time of inspection. These changes should not be noticeable to a driver and do not impact driving characteristics. As explained further, your vehicle s emissions will be reduced but will still be higher than the standards to which the vehicle was originally certified. This update will take approximately an hour to complete. 5

Emissions Modification Phase 2 : (available beginning in early 2018 ) The second part of the emissions modification will involve outfitting your car with new emission control parts to ensure system reliability and durability over time. If your car exceeds 40,000 miles (for automatic transmissions) or 70,000 miles (for manual transmissions) we will install updated emissions control system hardware - specifically a new Diesel Particulate Filter, Diesel Oxidation Catalyst, and Selective Catalytic Reduction Converter - that is needed to maintain emissions performance for the full useful life (150,000 miles) of your vehicle. As part of the Phase 2 modification, we will also install a second NOx sensor and corresponding software to improve the performance of the OBD system. The Phase 2 updates are expected to have no further impact on overall vehicle reliability, durability, fuel economy, engine sound, performance, or drivability. You will receive a notice when Phase 2 of the emissions modification is available for your vehicle. You should expect to receive this notice before June 30, 2019. If your vehicle has accumulated fewer than 40,000 miles (for automatic transmissions) or 70,000 miles (for manual transmissions) at the time of your Phase 2 update, your car will need to have the Diesel Oxidation Catalyst replaced a second time, before it reaches 150,000 miles. We will notify you when it is time to bring your car in for the second catalyst replacement. These updates will be made available at no cost to you starting in early 2018. A complimentary loaner vehicle will be available for the duration of this modification, which is expected to take approximately 9 hours. 6

Changes in Maintenance Schedule The emissions modification of your Volkswagen does not affect the recommended vehicle maintenance schedule for oil change intervals, Exhaust Gas Recirculation (EGR) cleaning, and Diesel Particulate Filter (DPF) ash loading as described in your maintenance booklet. However, diesel exhaust fluid (DEF, also known as AdBlue ) usage may increase. The amount of the increase will vary. Some drivers will experience no change, but others will use from 1% -14% more DEF on average. The amount of the impact will depend on driving style and other factors. This means some drivers will need to refill the DEF tank more frequently. Please see your dealer for additional details. Emission Limits Two additional labels will be installed under the hood of the vehicle after the modification is completed. The first label is an emissions modification completion label and the second is the updated Vehicle Emissions Compliance Information (VECI) label. Your vehicle was originally certified to EPA and CARB emission standards. After the modification, your vehicle s emissions will be reduced but will still be higher than the emission standard to which it was originally certified. The certified emissions standards compared with the emission limits that apply to your vehicle after the modification are shown in Exhibit 1. 7

Exhibit 1: Certification standards and respective emission limits applicable to your vehicle before and after the Emission Modification Certification standards and respective emission limits applicable to your vehicle before the Emission Modification in the Federal Test Procedure (FTP75 1) ) Federal Standard / Emission limits in grams/mile Tier 2 Bin 5 0-150,000 miles NOx (Nitrogen oxides) NMOG (Non-methane hydrocarbons) California and Section 177 states CO (Carbon monoxide) PM (Particulate matter) 0.07 0.090 4.2 0.01 0.018 HCHO (Formaldehyde) Standard / Emission limits in grams/mile LEVIII ULEV125 0-150,000 miles NOx + NMOG (Nitrogen oxides + Non-methane hydrocarbons) CO (Carbon monoxide) PM (Particulate matter) 0.125 2.1 0.01 0.004 HCHO (Formaldehyde) Emission limits applicable to your vehicle after the Emission Modification Federal States, California and Section 177 States Standard / Emission limits in grams/mile Automatic Transmissions 0-150,000 miles Manual Transmissions 0-150,000 miles NOx + NMOG (Nitrogen oxides + Non-methane hydrocarbons) CO (Carbon monoxide) PM (Particulate matter) 0.160 4.2 0.01 0.018 0.190 4.2 0.01 0.018 HCHO (Formaldehyde) 1) Additional limits apply for the Supplemental Federal Test Procedure (SFTP), the Highway test procedure and in the Federal Test Procedure at high altitude. 8

Extended Emissions Warranty Coverage For the following Volkswagen 2.0 L TDI engine vehicles repaired by the emissions modification recall, a warranty extension is applicable as defined below. 2015 MY Beetle with engine code CVCA 2015 MY Beetle Convertible with engine code CVCA 2015 MY Golf with engine code CRUA 2015 MY Golf SportWagen with engine code CRUA 2015 MY Jetta with engine code CVCA 2015 MY Passat with engine code CVCA Warranty Period The warranty period for the Extended Emissions Warranty limited warranty extension shall be the greater of: 11 years or 162,000 miles, whichever occurs first, from the vehicle s original in-service date; OR 5 years or 60,000 miles, whichever occurs first, from the date and mileage of Phase 1 of the emissions modification. At the time of the subsequent Phase 2 modification, the extended warranty will be honored for 5 years or 60,000 miles, whichever occurs first, from the date and mileage of the completion of Phase 2. The vehicle s original in-service date is defined as the date the vehicle was delivered to either the original purchaser or the original lessee; or if the vehicle was first placed in service as a demonstrator or company car, on the date such vehicle was first placed in service. 9

Parts Covered Under Extended Warranty The emissions system warranty shall cover the following parts or systems: The entire exhaust after treatment system, including the Diesel Oxidation Catalyst, the Diesel Particulate Filter, the Selective Catalytic Reduction converter, the dosing injector and other Diesel Exhaust Fluid system components, the exhaust flap, and all sensors and actuators The entire fuel system, including fuel pumps, high pressure fuel rail, fuel injectors, vibration damper, pressure control valve and all sensors and actuators The EGR system, including EGR valves, EGR cooler, EGR filter, EGR temperature sensor, all related hoses and pipes, and all sensors and actuators The turbocharger, including the turbocharger damper The On-Board Diagnostic (OBD) system, including SCR DEF quality sensor, and any malfunctions detected by the OBD systems other than those related to the transmission. Additionally, the engine long block warranty shall cover the engine sub-assembly that consists of the assembled block, crankshaft, cylinder head, camshaft, and valve train. The extended emissions warranty includes parts, labor, and applicable taxes. The extended emissions warranty shall not void or supersede any existing warranty. Conflicts concerning the warranty are to be resolved in favor of the consumer. More information about your extended emissions warranty coverage is available at www.vwdiesellookup.com and in the customer letter we sent to you in January 2017. 10

Extended Emissions Warranty Coverage (continued) Transferability This extended emissions warranty is fully transferable to subsequent owners. Warranty Notices All normal warranty provisions remain in effect. 11

Customer Notices If you choose to keep your vehicle but decline the emissions modification at this time, you should be aware that certain emissions-related replacement and repair parts may at some point no longer be available from Volkswagen. Accordingly, in the future, if your unmodified vehicle requires maintenance and repairs of the emissions system we may need to install parts associated with the emissions modification, or, in some cases, install all aspects of the emissions modification. You should not have any issues with the ability of your vehicle to pass the inspection and maintenance test. This may lead to changes to your vehicle s operation or performance resulting from those modifications as discussed in this booklet. If the vehicle has been modified by the customer prior to receiving the emissions modification in a manner that may yield a non-compliant emissions system (for example, removal of a catalyst, installation of parts that impact emissions or emissions- related parts, or modifications to the ECU or computer software of the vehicle), Volkswagen may not be able to perform the emissions modification until the customer corrects such modification. 12

Thank you. We know that the TDI emissions issue has understandably eroded the trust that we have worked so hard to build with you, our customers. We encourage you to review the information in this booklet to address any questions or concerns you may have. If we can be of further assistance, please let us know. Volkswagen of America VW_GEN3.2LTDI.USA.0001 2016 VWGoA All Rights Reserved.