PRESS RELEASE

Volkswagen Opens Parts Distribution Center in South Brunswick, NJ

8 April 1997

    AUBURN HILLS, Mich., April 7 -- Volkswagen of America, Inc.
today celebrated the grand opening of its new, $50 million, state-of-the-art
South Brunswick Parts Depot, now the largest parts distribution center ever
built and operated by Volkswagen in North America.
    Construction on the 323,282 square-foot facility began in the summer of
1995.  Built for Volkswagen by Matrix Development Group of Cranbury, New
Jersey, the new depot is one of the industry's most advanced distribution
facilities, employing the latest in storage concepts, contemporary design, and
ordering and handling automation.
    The South Brunswick site will house all of Volkswagen's parts distribution
operations in the Northeast region of the United States.
    Ideally located at Exit 8A off the New Jersey Turnpike -- one of the best
and most centrally located transportation networks in the eastern seaboard --
the new depot will serve customers from Maine to North Carolina.
Geographically, the South Brunswick depot is located within 500 miles of more
than 40 percent of Volkswagen's retail parts markets.
    "The Northeast is home to many of our most dedicated and successful
dealers and has always been a very strong market for both Volkswagen and Audi
in North America," said Clive Warrilow, President and CEO, Volkswagen of
America, Inc.  "The investment in this modern facility represents our
continuing commitment to this important region."
    The depot's grand opening comes amid rising sales in the U.S. for the
German automaker.  In 1996, Volkswagen of America sold 135,907 new cars, an
18.1 percent increase over the year prior, and so far in 1997, sales are
running ahead of the 1996 pace by 8.7 percent.  The German automaker's luxury
division, Audi, is also enjoying considerable sales success, with 27,379 sales
in 1996, an increase of 51.1 percent over the previous year.
    Warrilow was joined at the grand opening dedication ceremony by Dr.
Jens Neumann, Member of the Board of Management, Volkswagen AG, who gave the
dedication speech to the audience in attendance.  Also attending were Bernd
Leissner, President, Volkswagen de Mexico; the Honorable Debra Johnson, Mayor
of South Brunswick Township; the Honorable Alan Danser, Mayor of Cranbury; and
Charles Albrecht, South Brunswick Parts Depot Manager.
    Founded in 1955, Volkswagen of America, Inc., is headquartered in Auburn
Hills, Mich., and is a wholly owned subsidiary of Volkswagen AG, which is the
fourth largest producer of passenger cars in the world.  It markets a full
line of Volkswagen and Audi vehicles through a network of about 600 Volkswagen
and 270 Audi dealers.  In the United States, Volkswagen has sold more than 10
million cars and is the country's top-selling European importer.
SOURCE  Volkswagen of America, Inc.