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1 Interim Report of the Volkswagen Group for the period January - September 2001 Positive business trend maintained: Five global premieres presented at the Frankfurt Motor Show: Polo, Audi Cabriolet, Audi A4 Avant, Skoda Superb and Lamborghini Murcielago Deliveries to customers 2.1 % up on previous year IAS pre-tax profit 3,721 million; 5.6 % return on sales, up on first half-year Increased HGB pre-tax profit, despite the effects of balance sheet date valuation of repurchased shares We reaffirm our expectation of an increased full-year IAS pre-tax profit, despite current uncertainties Index 140 Development of the Volkswagen share price: Sept to Sept. 2001* Sept. Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. VW ordinary shares VW preferred shares DAX (German share index) (Index: as at Sept. 30, 2000 = 100) Sept Dec March 2001 June 2001 Sept VW ordinary share ( ) VW preferred share ( ) DAX index 6,798 6,434 5,830 6,058 4,308 * Month-end prices. Seite 1 von 13

2 Key figures of the Volkswagen Group 3rd quarter 1st-3rd quarter 000 units 1) / million % % Volkswagen Group Deliveries to customers 1,237 1, ,897 3, Unit sales 1,190 1, ,913 3, of which: in Germany abroad 967 1, ,186 3, Production 1,185 1, ,956 3, of which: in Germany ,441 1, abroad ,514 2, Workforce ( 000 on / ) of which: in Germany abroad Automotive Division Investments in tangible fixed assets 1,553 1, ,154 3, as % of revenues Depreciation 1,175 1, ,520 3, Cash flow 2) 1,858 1, ,263 5, Volkswagen Group HGB figures: Revenues 21,416 21, ,189 63, Pre-tax profit ,501 2, as % of revenues Net earnings ,454 1, IAS figures: Revenues 20,716 n.a. 66,379 n.a. Pre-tax profit 1,361 n.a. 3,721 n.a. as % of revenues 6.6 n.a. 5.6 n.a. Net earnings 903 n.a. 2,357 n.a. Earnings per share in 3) HGB IAS 2.37 n.a n.a. 1) Each individual figure is rounded, so that minor discrepancies may occur through the addition of these amounts. 2) In contrast to the previous method of reporting, the consolidation transactions have been allocated to the individual divisions of the Group and the balance sheet currency translation differences in the Group overall have been adjusted to the treatment in the divisions. The previous year's figures have been corrected accordingly. 3) The calculation is based on the following average numbers of ordinary and preferred shares: 3rd quarter 2001 = million shares, 1st-3rd quarter 2001 = million shares, 3rd quarter 2000 = million shares, 1st-3rd quarter 2000 = million shares. Dilution through the future exercising of options was not taken into account. Seite 2 von 13

3 Business Development Economic trends In the third quarter of 2001 worldwide economic growth slowed further, and the slowdown spread to an increasing number of countries and regions. The consequences of the terrorist attacks in the USA had an additional negative effect in the second half of September. In the Euro zone and therefore also in Germany the decline in the growth rate continued. Deliveries to customers January 1 to September 30 3rd quarter Change 1st-3rd quarter Change '000 units in % in % Western Europe total ,305 2, Germany Western Europe excl. Germany ,559 1, Eastern Europe North America USA South America/Africa Brazil Argentina Asia-Pacific China Japan Rest of the world Volkswagen Group 1,237 1, ,897 3, Volkswagen passenger cars ,392 2, Volkswagen commercial vehicles Audi* Seat Skoda Rolls-Royce/Bentley (units) ,406 1, * Including Lamborghini. Seite 3 von 13

4 Deliveries to customers With 3,897,194 units delivered worldwide between January and September 2001, the Volkswagen Group increased its sales by 2.1 %, thereby improving its share of a generally declining world market by 0.5 percentage points to 12.4 %. In Germany there were still no signs of a trend reversal in the automobile market (- 2.2 %). At 746,781 units, Volkswagen's deliveries were 4.3 % down on the comparable period in the previous year. With a market share of 29.9 (29.6) %, the Group was able to extend its lead over the competition based on new passenger car registrations. The Western European export markets generally declined slightly. New vehicle registrations were 0.1 % down overall. In contrast, Volkswagen increased its sales by 2.3 % to 1,558,571 units. In the Western European market as a whole, including Germany, Group deliveries to customers of 2,305,352 units (+ 0.1 %) were at the level of the previous year. The Group's market share was further increased to 18.9 (18.5) %. The positive development of sales in Eastern Europe continued, with 252,172 units sold ( %). The Volkswagen Group recorded substantial growth in the Czech Republic and Slovakia, with sales of 75,278 (+ 8.8 %) and 34,370 ( %) units respectively. The situation in the North America Region directly after the terrorist attacks in the USA in September was marked by uncertainty with regard to future economic development. Sales achieved by Volkswagen in September were better than initially expected under the circumstances. Consequently, on a cumulative basis the Volkswagen Group s sales of 499,013 units were slightly up on the previous year (+ 0.5 %). In the US passenger car market, which declined by 7.7 %, Volkswagen delivered 268,789 units (- 2.2 %). Audi continued its positive trend, with 63,658 units sold (+ 5.6 %). Volkswagen Canada was affected by reluctant buying trends, which saw deliveries fall to 37,355 units (- 2.6 %). In a still growing passenger car market, Volkswagen de Mexico sold 128,553 units, 5.1 % more than in the comparable period in the previous year In the South America/Africa Region, the positive development seen in the first half of the year in the Brazilian passenger car market weakened significantly over the third quarter. Up to the end of the period under review the cumulative rise was still 18.6 %. The persistent recession in Argentina led to a 42.9 % decline in the passenger car market. In the region as a whole, however, Volkswagen increased its sales by 8.4 % to 425,217 units. With 335,595 units sold, Volkswagen do Brasil achieved a 12.6 % increase. In Argentina the drastic decline in sales persisted: 22,220 units were well below the previous year's level ( %). The passenger car market in South Africa again showed an upward trend (+ 6.0 %) which Volkswagen outperformed, increasing its sales by 15.9 % to 43,582 units. Sales in the Asia-Pacific Region of 349,922 units ( %) remained strong. In China 273,237 units were sold ( %), with the strongest Seite 4 von 13

5 performance coming from the new Passat and Audi A6 models. In the Japanese import market the modest upward trend building on the low level of the previous year was maintained (+ 3.7 %). Group sales totalled 52,391 units, 7.7 % up on the previous year. Inventory held worldwide by our Group companies and the dealership organization was once again maintained at an ideal level overall in order to ensure supplies to our customers. Unit sales, production and workforce The unit sales of the Volkswagen Group to the dealership organization to the end of the third quarter 2001 rose by 1.6 % against the previous year's figure, to 3,912,792 vehicles. Of that figure, 18.6 (19.9) % were sold in Germany. The worldwide production of the Group increased in the period under review to 3,955,793 units (+ 3.2 %). A flexible production control system was deployed to adjust production volumes to demand. Production in Germany increased, and in the year to date represented 36.4 (35.7) % of total production. Apart from Seat, all product lines recorded increases in production, some of them substantial. The production figures also include 40,062 Ford Galaxy units (+ 7.5 %), which are reported in the figures for unit sales but not in the deliveries to customers. The number of people employed by the Volkswagen Group as per September 30, 2001 increased slightly against the figure at the end of the previous year, to 324,713 (+ 0.1 %). Of that total, 166,805 people were employed in Germany (+ 1.6 %). The increase in Germany resulted primarily from the increased workforce at Audi as a result of higher production volumes. At Skoda and in the South America/Africa Region personnel levels were reduced. Seite 5 von 13

6 Overview of Earnings Statement of earnings of the Volkswagen Group January 1 to September 30 1st-3rd quarter Change million 2001 % 2000 % in % Revenues 68, ,865* Cost of sales 59, , Gross profit 9, , Selling and distribution costs 5, ,922* General administration costs 1, , Other operating result x Operating result 2, , Financial result x Results from ordinary business activities 2, , Taxes on income 1, , Net earnings 1, , * The previous year's selling and distribution costs included costs of 247 million which have now been classified as reduction to revenues. Statement of earnings of the Volkswagen Group July 1 to September 30 3rd quarter Change million 2001 % 2000 % in % Revenues 21, ,289* Cost of sales 18, , Gross profit 3, , Selling and distribution costs 1, ,649* General administration costs Other operating result x Operating result 1, x Financial result x Results from ordinary business activities Taxes on income Net earnings * The previous year's selling and distribution costs included costs of 247 million which have now been classified as reduction to revenues. Seite 6 von 13

7 Revenues and earnings Driven by the positive development of unit sales outside Germany, the Volkswagen Group increased its revenues by 6.8 % to 68,189 million in the first three quarters of the year. The reasons for the growth in revenues were increased volumes in vehicle sales and the spare parts business, the growing financial services business, an improvement in the model mix and the sustainable effects of price adjustments. The proportion of total revenues generated outside Germany increased to 72.7 (71.3) %. The gross margin increased to 13.2 (12.6) % and, owing to a lower increase in cost of sales, gross profit rose to 9,031 million ( %). This reflected the measures undertaken as part of our earnings improvement programme, including a reduction in material and logistics costs. In addition, the disproportionately low rise in fixed costs helped to boost earnings. The new VW pension scheme also reduced the cost of pension commitments. Selling and distribution costs increased slightly more than revenues. Factors in this included higher sales promotion expenses in the US market. Administration costs as a percentage of revenues remained at the previous year's level. The improvement in the other operating result especially reflected the positive exchange rate impact arising from forward foreign exchange transactions and from balance sheet currency translation. In contrast, the financial result deteriorated. The general uncertainty on the capital markets caused by the terrorist attacks in the USA also resulted in a fall in the VOLKSWAGEN AG share price, necessitating a revaluation in the HGB financial statements as per the balance sheet date. The amount of the revaluation will decrease in line with the expected share price recovery. In the period under review the Volkswagen Group achieved a result from ordinary business activities of 2,501 million ( %). After taxes, net earnings totalled 1,454 million ( %). Seite 7 von 13

8 Segmental results The Volkswagen Passenger Cars and Audi brands, the North America and Asia-Pacific regions and the Financial Services Division were the major earnings drivers contributing to the positive business trend of the Volkswagen Group in the first three quarters of The Volkswagen Passenger Cars and Audi brands recorded substantial increases in unit sales and earnings in the year to date. Strong sales growth in the Asia-Pacific Region generated earnings well above the previous year. In currently difficult market conditions, the North America Region almost attained the highly satisfactory level of earnings of the previous year. Earnings at Seat were slightly up on the previous year. Despite healthy unit sales, the earnings of the Skoda brand did not reach the previous year s level. The result was negatively impacted by unfavourable exchange rates and the associated significant increase in material costs. The Volkswagen Commercial Vehicles brand reported lower earnings than in the previous year because of increased upfront investments for the new Transporter generation. Rolls-Royce/Bentley posted a loss at the same level as the previous year, owing to the cost of developing a new model series. In the South America/Africa Region, earnings development in Brazil was increasingly impacted by losses arising from the devaluation of the Real relative to the US Dollar and by increases in material costs, as well as by the ongoing economic crisis in Argentina. Consequently, the region made a loss for the 9-months reporting period. The Financial Services Division achieved a substantial improvement in earnings against the year The earnings of the Financing Division were slightly up on those of the previous year. Seite 8 von 13

9 Financial Overview and Overview of Assets Automotive Division Investments in tangible fixed assets in the Automotive Division in the period under review totalled 4,154 million (+ 5.2 %), and were well covered by cash flow. The investment quota of 6.8 % was at the previous year's level. Net liquidity totalled 5,157 million, 2.4 billion down on the level at June 30, The fall related mainly to "Other internal financing", in particular the reduction in liabilities from current business, which had built up over the first half of the year for seasonal reasons. Financial Services The Financial Services Division again grew its business in the first nine months of the year Investments in leasing and rental assets totalled 8,393 million (+ 2.5 %). The number of finance and leasing contracts worldwide as per September 30, 2001 increased by 6.7 % relative to the previous year, to 3,581,110. Including insurance contracts, the total number of outstanding contracts at the end of the period under review was 4,971,150. Of all new vehicles delivered, 30.1 % were financed or leased. The deposits of Volkswagen Bank direct increased significantly against the 2000 year-end figure, to 4,393 million ( %). The expanding business required additional funding, which was financed primarily by external capital as is common practice in the industry. Development of short-term liquidity January 1 to September 30, 2001 Divisions Auto- Financial Financ- Volksmotive Services ing wagen million Group Cash flow 5,263 3, ,798 Other internal financing , ,569 Cash flow from current operations 4, ,229 Investment activity - 4,234-5, ,342 Net cash flow 649-4, ,113 Financing operations 3,036 1, ,622 Change in gross liquidity 3,685-3, Gross liquidity at , ,579 Internal loans issued/received 11,149-15,205 4,056 0 Gross liquidity - adjusted - 17,023-14,546 4,102 6,579 Total third-party borrowings - 11,866-20,933-6,698-39,497 Net liquidity 5,157-35,479-2,596-32,918 Seite 9 von 13

10 Current ratings In the current year the rating agencies, Standard & Poors and Moody s, have again rated the creditworthiness of Volkswagen highly. This provides the Group with strong potential for raising external financing at favourable terms. Short-term Long-term Standard & Poors A-1 A+ Moody s P-1 A1 Organs of the Company On application of the Board of Management of VOLKSWAGEN AG, the Wolfsburg District Court by its decision dated August 15, 2001 appointed Ms. Elke Eller-Braatz to succeed Mr. Wilhelm Hemer on the Supervisory Board of VOLKSWAGEN AG. Mr. Hemer had resigned his post with effect from July 31, The period of office of Ms. Eller-Braatz began on August 20, At its meeting on September 7, 2001 in Dresden, the Supervisory Board of VOLKSWAGEN AG unanimously appointed Dr. Bernd Pischetsrieder to succeed the current Chairman of the Board of Management, Dr. Ferdinand Piëch. Dr. Pischetsrieder will become Chairman of the Board of Management of VOLKSWAGEN AG and Chairman of the Volkswagen Brand Management Board with effect from April 17, The Supervisory Board further resolved to propose to the Annual Meeting of Stockholders of VOLKSWAGEN AG on April 16, 2002 in Hamburg that Dr. Ferdinand Piëch be elected to the Supervisory Board. Seite 10 von 13

11 Balance sheet at September 30, 2001 and December 31, 2000 Assets Automotive Financial Volkswagen Services Group million Fixed assets 28,584 27,459 15,373 13,531 38,374 35,437 Tangible assets 17,296 16, ,518 16,824 Financial assets 11,287 10, ,309 5,951 Leasing and rental assets ,059 13,174 14,547 12,662 Current assets 35,388 31,140 27,571 24,763 50,602 46,156 Inventories 10,608 9, ,742 8,389 Receivables 21,761 16,456 26,618 23,949 35,192 31,544 Liquid funds 3,019 5, ,668 6,223 Total assets 63,972 58,599 42,944 38,294 88,976 81,593 Stockholders' equity and liabilities million Stockholders' equity 15,867 14,597 1,654 1,531 12,485 11,521 Liabilities 48,105 44,002 41,290 36,763 76,491 70,072 long-term 9,205 9,226 4,440 1,462 13,841 11,148 medium-term 5,512 5,593 10,682 10,965 13,428 14,186 short-term 33,388 29,183 26,168 24,336 49,222 44,738 Total capital 63,972 58,599 42,944 38,294 88,976 81,593 Seite 11 von 13

12 Earnings according to IAS As a result of the move to International Accounting Standards (IAS) as the basis for the Group's consolidated financial statements with effect from December 31, 2001, the interim reports for the year 2001 include a provisional transition from HGB to IAS earnings. The IAS pre-tax profit in the period under review totalled 3,721 million, 1,220 million higher than the HGB figure. According to IAS, a return on sales of 5.6 % was generated. The net earnings totalled 2,357 million. Earnings per share were The stockholders' equity under IAS totalled 23.6 billion, 89.1 % above the HGB figure. An equity ratio of 22.0 % was attained, 8.0 percentage points above the comparable HGB figure. Transition from HGB to IAS earnings (provisional) million 1st-3rd quarter 2001 HGB pre-tax profit 2,501 Capitalization of development cost (netted against depreciation) 734 Depreciation on tangible fixed assets 68 Valuation of leasing and rental contracts 153 Valuation of inventories 187 Valuation of pension provisions Change in other provisions 34 Valuation of financial instruments* Valuation of treasury stock 687 Elimination of balance sheet currency translation differences Other changes - 15 IAS pre-tax profit 3,721 - as % of revenues 5.6 Effective taxes 1,047 Deferred taxes as per IAS 317 IAS net earnings 2,357 - in per share 6.22 * Receivables, financial investments and derivatives. Seite 12 von 13

13 Outlook The after-effects of the terrorist attacks in the USA on the future development of the world economy, and thus also on the business of the Volkswagen Group, are as yet difficult to estimate. Nonetheless, we still expect full-year sales to be slightly up on the previous year, with international sales compensating for the still weak demand in Germany. Consequently, we still expect our 2001 IAS pre-tax profit to be above last year's figure. VOLKSWAGEN AKTIENGESELLSCHAFT The Board of Management Wolfsburg, October 2001 Scheduled dates: (Subject to change) Annual Press Conference/ International Investors Conference 2002: March 12 Annual Meeting of Stockholders 2002: April 16 Interim Report January to March 2002: May 3 Interim Report January to June 2002: July 30 Interim Report January to September 2002: October 30 Published by: Investor Relations: VOLKSWAGEN AG VOLKSWAGEN AG Finanz-Analytik und -Publizität Investor Relations Brieffach Brieffach 1849 D Wolfsburg D Wolfsburg Phone: Phone: Fax: Fax: Internet: VOLKSWAGEN AG Investor Relations 17C Curzon Street London W1J 5HU Phone: Fax: Seite 13 von 13