Volkswagen Canada Inc. & VW Credit Canada,Results Inc.

The ratings are confirmed as indicated based on the guarantee from the
parent, Volkswagen AG ("VW" or "the Company"). Unlike most other auto
manufacturers, profitability remained high for VW in 2001 and marked the
eighth year of good sales and earnings results. The Company was able to
modestly grow volumes in slowing markets without the aid of large
incentives, and cost savings helped profitability levels remain high.
Overall sales to customers increased by 0.4% in 2001 despite an overall
global market decline of 1.1% increasing global share to 12.4% from
12.2%. Market share has benefited over the years from a strong product
line-up and should increase further due to the pipeline of new models,
including, for the first time, an SUV and mini van offering for North
America. Although industry volumes are expected to be lower in most
markets in 2002, earnings for the full year are still expected to remain
high at 2001 levels due to cost cuts and new models.  Dr. Pischetsrieder
has already implemented new ideas, but is not expected to make any
radical strategic changes. Dr. Piech's new function will be head of the
supervisory board.  The overall strategy for trucks and the Scania
investment has yet to be determined.  While Scania would provide
diversification benefits, it would carry other risks, including the cost
and timing of acquiring a majority stake. Also, VW would likely have to
pursue other truck acquisitions in order to achieve the necessary scale
to be competitive if it were to proceed with Scania. The financial
profile is expected to remain strong, with cash exceeding debt in the
manufacturing business, as internal cash flow should significantly
exceed capital expenditures and modest dividend levels in the future.
The balance sheet will be significantly impacted in the future by VW's
decision on Scania.