New Beetle 1.8 T Provides Added Boost to Strong Sales

10 June 1999

New Advertising Campaign Showcases Latest Model

	AUBURN HILLS, Mich.--Coming off a string of record sales marks in the
U.S., Volkswagen of America is launching a new high-powered version of its
New Beetle.The 150-horsepower New Beetle 1.8 T is in dealerships now and is
being introduced to the market with a new television advertising campaign. 

	Volkswagen is well ahead of last year's results selling 119,855 new cars
to date in 1999, up 51.4 percent from the same period in 1998 when sales
were 79,174. In May, Volkswagen sold 29,704 new cars in the U.S., which
represents a 56.0 percent increase over last year's mark of 19,046.   The
New Beetle continues to attract the attention new buyers with 7,071 sold in
May, a 159.0 percent increase over 1998's May mark of 2,730.
     
	The New Beetle 1.8 T updates the popular model that was introduced last
year to rave reviews and high consumer demand. The heart of the New Beetle
1.8 T is Volkswagen's award-winning 1.8 liter, 20-valve, turbocharged
four-cylinder engine that also powers the Passat GLS.  The 1.8 T engine
produces 150 horsepower and 155 ft. lbs. of torque, giving the New Beetle
the power to go from 0 to 60 mph in just 8 seconds.

	Additionally, the 1.8 T model is loaded with many engaging details such as
a rear spoiler that moves as needed. It begins tucked against the rear
window, but pops out to improve aerodynamics as speed increases.  Also
standard in the new model are heatable, leather-trimmed front seats, a
leather-wrapped steering wheel, 16-inch alloy wheels and a power glass
sunroof.

	"When the New Beetle was launched in North America last year, it appealed
to a very wide audience," commented Dave Huyett, Volkswagen's Director of
Marketing. "The new turbo version adds an element of pure power to this
remarkably original and modern design. We injected this same power, or
Turbo, into the advertising."

	The new television spot for the New Beetle 1.8 T is dubbed "Turbonium" and
helps keep the New Beetle "buzz" alive and fresh.  Highlighting the power
and performance of the new Turbo engine, the spot is energetic, and charged
with a kind of nuclear excitement. The
concept focuses on the sci-fi discovery of a new element called
"Turbonium." International news reports describe the incredible development
as flashes of the New Beetle race across the screen. The discovery adds a
new element to the periodic table -- presumably the force that powers the
new 1.8 T Turbo Beetle.

	"The new Turbo injects the New Beetle with a little bit of testosterone,"
said Ron Lawner, Arnold Communications Chief Creative Officer. "The car
looks great, it drives great, and it moves.  When you think about the New
Beetle and a 1.8 turbo engine, it's really off the charts. Hence the
concept of a new element: Turbonium."
        
	The spot was released the week of June 7 and will be seen on high profile
shows like The Practice, NYPD Blue, Felicity, Dharma and Greg and the
X-Files, as well as, cable stations like ESPN, VH1, MTV and FOX Sports Net.
Corresponding print advertising began running in the June issues of
magazines such as: Outside, Details, In Style, Premier and Vanity Fair.

	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 260 Audi dealers. In the United States, Volkswagen has sold
more than 10.6 million cars and is the top-selling European importer.
Volkswagen of America imports cars from company plants in Germany and
Mexico through port operations in San Diego, Calif., Boston, Mass.,
Wilmington, Del., Brunswick, Ga., and Houston, Texas.