2003-2006

In January 2004, Volkswagen presents the Concept T study at the North American International Auto Show in Detroit. This offroad coupé which combines the characteristics of an offroader with those of a sports car opens the door to a new market segment for the Volkswagen Group.

With a view to expanding production capacity in China, “Volkswagen FAW Platform Company Ltd.” is established in Changchun on July 13 to manufacture chassis components for the Chinese auto-producing joint venture companies. Two contracts for engine joint ventures are signed on December 6, with production start-up in 2006. “FAW Engine (Dalian) Company Ltd.” focuses on manufacturing low-emission engines for mid-class vehicles, while “Shanghai Volkswagen Powertrain Company Ltd.” builds engines for compact cars.

“Volkswagen Mechatronic GmbH & Co. KG”, the company established in cooperation with Siemens VDO in Stollberg/Saxony, begins manufacturing injection components for diesel engines in November. In the same month, production of the fifth generation of the Jetta begins at the Puebla plant of Volkswagen de Mexico. Delivery of the Jetta to the USA commences in March 2005 with the European market launch in August.

Series production of the sixth-generation Passat begins in January 2005, with the new model debuting at the Geneva Motor Show in early March. The Fox compact car makes its entrance on the European market at the Auto Mobil International show in Leipzig in April, and takes pole position in its class before the end of the year.

On September 13, the Volkswagen Group establishes “Volkswagen Reinsurance AG”, thus giving Volkswagen Financial Services AG greater influence on the development and pricing of insurance products. With a total 1.6 million insurance policies and a broad range of leasing and financing packages, the Group is Europe’s largest provider of automotive financial services.

The Eos convertible-coupé with its innovative five-piece roof which opens and closes completely within 25 seconds celebrates its world premiere at the Frankfurt International Motor Show in September. The first direct injection gasoline engine with integrated compressor and turbo charger is installed in the Golf GT TSI. This new generation of engines has a cubic capacity of 1.4 liters and develops 170 h.p., setting the standard in terms of dynamics and consumption.

Dr. Ing. h.c. F. Porsche AG becomes the largest shareholder, acquiring 18.5 percent of the ordinary shares of Volkswagen Aktiengesellschaft in October 2005. This step lends further weight to the strategic partnership agreed between the two companies. In 2006, the sports car manufacturer based in Swabia increases its stake in Volkswagen Aktiengesellschaft to 30 percent.

Volkswagen presents the Polo BlueMotion, the most economical car in its class in Europe with an average consumption of 3.9 liters, at the Geneva International Motor Show. In May 2006, Volkswagen establishes “000 Volkswagen RUS” registered in Kaluga some 160 kilometers south-west of Moscow in preparation for building a production facility. The foundation stone for the factory, which will manufacture Volkswagen and Skoda brand vehicles, is laid on October 28.

On the US market, the Touareg V10 TDI debuts in August as the first turbo-diesel SUV with a diesel particulate filter.

In order to prevent a possible hostile takeover, Volkswagen AG acquires a 15.06 percent strategic interest in MAN AG, one of the world’s leading truck and diesel engine manufacturers, on October 3, 2006.

In October, the collective agreement negotiated for Volkswagen AG sets out the main elements of a restructuring program aimed at returning productivity, labor costs and capacity utilization to a competitive level. The core of the agreement is the abolition of the four-day week introduced in 1994. The increase in working time to a maximum of 33 hours in production and a maximum of 34 hours in indirect areas is linked to specific production volumes which will secure capacity utilization and jobs over the coming years.

In November 2006, Volkswagen enters a new future market where the Skoda brand has already been building and marketing vehicles since 2002. The investment agreement concluded with the Indian government lays the foundation for constructing a production plant in Pune in the Indian state of Maharashtra.

On November 17, the Supervisory Board of Volkswagen Aktiengesellschaft decides on a change in Group top management. With effect from January 1, 2007, Martin Winterkorn will move from his post as Chairman of Audi to become Chairman of the Board of Management of the Volkswagen Group.