1. BILD Tennessee Highway Operations and Safety Conference Addressing Distracted Driving Related Crashes November 19th, 2013

2. Volkswagen Chattanooga and the Volkswagen Group 2 2012 Key Figures VW Chattanooga ModelPassat Volume152,500 Volkswagen Brand Markets4 Volume5,771,700 Volkswagen Group Brands11 Volume9,255,000

3. Distracted Driving: Data 3 Definition: Distracted driving is any activity that could divert a person's attention away from the primary task of driving. Most commonly associated with the usage of cell phones while driving Distracted driving related crashes are significantly more common in younger age groups

4. Previous approach within Volkswagen Group Concept : 4 Avoid distraction using cell phone operation by vehicle integration Technology : Impact : 100% standard on Volkswagen Hands-free operation reduces workload to dial / pickup phone Integration into audio system Newer research indicates distractive load during conversation NOT reduced Newer research indicates voice dialogue is very distracting Pairing technology is difficult to understand Customer satisfaction is poor Does not address texting and other mobile features

5. Rethinking the options 5 Using a stool as a step is not causing harm Falling from a stool is not hurting High forces caused by acceleration when hitting the floor cause injuries Concept : Reduce impact of distracted driver behavior Technology : Stability ProgramBrake AssistFront Assist

6. Lane Keeping Function 6 Technology : Impact : Forward facing camera. Merged vehicle sensor data In case of deviation: Driver alert Steer by wire Technology available at various suppliers Good utilization of existing car systems Alerting interface can be distracting Handover to follow lane mode not yet established in market Cost

7. Adaptive Cruise Control 7 Technology : Impact : Forward facing radar Cruise control keeping distance Additional functions possible Forward collision warning Follow to stop Stop and Go Technology matured into 4 th generation Follow to stop feature available Pedestrian detection and protection available Maintaining drivers responsibility Cost 2014 Acura MDX 2012 Audi A3 2002 VW Phaeton

8. Introduction of new technology into the mass market 8 Adaptive Cruise Control ACC Customer Price: 2.300 Phaeton 2002 Adaptive Cruise Control; Follow to stop Customer Price: 1.060 Passat 2005 ACC incl. Follow to stop, Front assist Customer Price: 555 Golf 2012 ACC module ready to be deployed Customer Price: affordable Passat 201? As technology matures it becomes accessible to increased numbers of customers

9. Texting is not the distraction, driving is 9 Combination of various assistant systems 2005 Stanley 2010 TTS Pikes Peak Technology : Enable autonomous driving Proof of concepts have been established using existing technology Current research is focused on interface design Impact : All technology available First laws in place (Nevada) User interface and acceptance Regulatory framework Cost Liability

10. Research project: CAMP V2V 10 Volkswagen Group Research is particpating in the CAMP Vehicle to Vehicle (V2V) research activities. Goal is to evaluate the effectiveness and feasibility of using V2V communication technology in critical situations to reduce the number and severity of crashes in various driving scenarios. Volkswagen is heading 2 from 5 research clusters.

11. Refocusing: Will technology solve the issue ? 11 The iPhone is the Ford Mustang of the Milleniums 46 % of people 18-24 would choose access to the internet over access to their own car. Teenagers might prioritize social networking over driving. 21-to-30-year-olds now drive 8 % fewer miles than they did in 1995. The mobility of younger generation (sub 25yrs) is on a 50 year low. Child – Toy 1964 Child – Toy 2002 Source: NY Times

12. Driving behavior of young adults 12 Electronic communication reduces the need for actual contact (and some young people feel that driving interferes with texting) Current economic downturn is making it more difficult for young persons to buy and maintain a vehicle Young people are moving in increasing numbers to large cities with reasonable public transportation (e.g., New York and San Francisco)

13. Mobility concepts of the Milleniums 13

14. Impact of driver assistance technology 14 Current driver assistance technology is neither attractive nor within reach of the highly impacted younger age group Driving experience in the age group decreases, further adding risks Car Sharing will continue to grow into a competitive business Car Sharing fleet operators, like Zipcar, will develop interest to add assistance functions to reduce their operation cost Expect an increased pace in market penetration of this technology

15. Conclusion 15 Driver distraction needs regulation and enforcement Technology will offer no short term solution The need and means to communicate will persist Long term solution are autonomous driving technologies The technology is available Next milestone is generating consent on the necessary regulatory framework

16. 16 Drive Safely (and enjoy it)