Questions and Answers

May 14, 1998

TO: VOLKSWAGEN DEALER PRINCIPALS, GENERAL MANAGERS, SALES MANAGERS, SERVICE MANAGERS, AND PARTS MANAGERS

SUBJECT:
VOLKSWAGEN UA RECALL CAMPAIGN - QUESTIONS AND ANSWERS

This question and answer document is intended to provide an overview of the campaign for members of your staff with customer contact responsibilities For more detailed information, New Beetle customers should be referred to your Service Department.

QUESTIONS AND ANSWERS RELATING TO RECALL CAMPAIGN UA

INFORMATION FOR VW DEALERSHIP EMPLOYEES

WHAT IS HAPPENING?

Volkswagen is conducting a voluntary recall campaign involving all New Beetles sold to date or in dealer inventory in the United States (approximately 8,500 cars) and Canada (approximately 1,600 cars).

Volkswagen has determined that wires in the engine compartment could potentially chafe from rubbing against the battery tray. This could potentially cause the air conditioning compressor to fail, as it did in 3 cases to date. hypothetically this could also cause a failure with the fuel pump and stall the car without warning; however, this latter scenario has not been reported.

IMPORTANT FACTS

Volkswagen has taken a very proactive approach to this voluntary recall. Because of the "love affair" that so many New Beetle owners have with their cars, Volkswagen is contacting them via overnight mail and requesting that they contact their Volkswagen dealer as soon as possible to arrange for the necessary repairs to be completed. Volkswagen has also made it possible for each dealership to develop a special "Customer Care" package so as to put a smile on each New Beetle owner's face.

HOW WILL CUSTOMERS BE NOTIFIED?

All owners of affected New Beetles will be notified by overnight mail. They will be informed of the nature of the recall and urged to make an appointment at their authorized Volkswagen dealership for the necessary repairs.

WHEN WILL NOTICES BE SENT?

Notification letters were sent on May 14th, for delivery on May 15th, 1998. Some customers may also learn of the recall through news reports following the public announcement on May 15th.

WHAT KIND OF WORK IS INVOLVED?

The recall work involves replacing the battery tray, inspecting and rerouting nearby wires, and installing a protective wire cover. The work will take about 1 hour.

ARE PARTS AVAILABLE FOR THE REPAIRS?

Yes, based on the dealer's allocation, an initial supply of parts will be shipped to each dealer for arrival on May 15th. Additional parts to support the level of repairs performed by the dealer can be ordered from the facing depot.

WHAT ABOUT VEHICLES IN DEALER INVENTORY?

Any affected car is subject to the recall. Cars in dealer inventory may not be sold, leased, or loaned to a customer until the service is performed.

OTHER QUESTIONS OR CONCERNS

Should you have any other questions, or unique circumstances that require more detailed information, contact your Ownership Technical Specialist (OTS) or other member of your Area Executive (AE) Team.