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Volkswagen to Sell First-Ever e-Color New Beetle

1 May 2000

Volkswagen to Sell First-Ever Special Color Edition New Beetles Only Through the Internet
    AUBURN HILLS, Mich., May 1 Enlisting the power of the
Internet, Volkswagen of America, Inc. is launching two new color choices for
its popular New Beetle model-the first and only new color choices for this car
since its introduction more than two years ago.  These limited edition new
colors will be sold exclusively via the web, marking the first time Volkswagen
has used an online buying process to sell its cars.

    Colors for these limited edition New Beetles include a mystic light blue,
called Vapor Blue, and a sporty, cutting-edge yellow, called Reflex Yellow.

    Volkswagen is limiting production of each color to 2,000 units.

    Recognizing a growing consumer desire to purchase online, Volkswagen's
online  buying process allows interested customers to learn all about these
special color edition New Beetles via its website, configure a desired car,
check its availability within Volkswagen's distribution system, pick a dealer,
consider financing, discuss purchasing terms, and finally arrange a delivery
date.

    "We know that nearly 60 percent of Volkswagen's customers use the internet
to gather information and purchase products and services," said Liz Vanzura,
Volkswagen's Marketing Director.  "Volkswagen plans to be a leader and an
innovator in this area.  This is the first step in that direction."

    Vanzura said Volkswagen's online program differs from those used by some
other carmakers by including dealers, not excluding them.  It is also easier
to use, and is a completely Volkswagen branded experience.

    "We developed this pilot model with our dealers' input and with the
expectation that they will be an integral part of it," she said.  "For
consumers, this model is convenient and ultimately gives them more control of
the buying process.  For our dealers, this enhances their digital capabilities
and gets them ready for the new wave of online shopping in the industry."
Looking at the process step-by-step, customers log on to the vw.com website,
learn about the car, order a brochure if desired, and then find a local or
preferred dealer.  The customer configures a car with the desired options and
searches for that vehicle in the Volkswagen system.  Once a car is selected
for purchase, the customer is automatically plugged into his or her own
personal website page, called "MyVW."  At this juncture, the customer opens a
dialogue with the dealer to discuss the purchase terms via an electronic
message board or on the telephone.  Here, he or she also has the opportunity
to finance online if desired.  Once he or she agrees upon final terms, the
customer awaits confirmation and then coordinates the delivery of the vehicle
with the dealer.

    Except for picking up the car, the customer could conceivably complete the
car purchase without moving from his or her computer screen.

    As stated, Volkswagen's Limited Color Edition New Beetles come in two
exciting new colors.  All models come in the New Beetle's abundantly equipped
GLS trim level, which includes such items as power one-touch up and down
windows, cruise control, ABS brakes, CFC-free air conditioning, a six-speaker
stereo, anti-theft alarm, remote central locking, fog lamps, a center armrest,
and much more.  All 4,000 limited edition cars will be optionally equipped
with a choice of gray or black leather seating, a power glass sunroof, and 16-
inch alloy wheels.

    Engine options for the Vapor Blue New Beetle include Volkswagen's
standard 115-horsepower, 2.0 liter or the sportier 150-horsepower, 1.8 T
optional powerplant.  All Reflex Yellows will be equipped with the 1.8 T
engine.

    The Manufacturer's Suggested Retail Price for the Vapor Blue Limited
Edition Color New Beetle GLS is $18,875 and $21,025 with the 1.8T engine
option.  All Reflex Yellows start at $21,025 with the 1.8 T.

                               Marketing vw.com

    Volkswagen of America, Inc. plans to announce its online buying program
for the Limited Color Edition New Beetles with a concerted advertising
campaign that will include national broadcast and print media.
National advertising will kick off on May 1, teasing the online program to
follow shortly thereafter.

    "Our advertising surrounding this program is designed to push people to
the website.  As always, it will be done in a very unique and Volkswagen way,"
said Vanzura.  "People who love our advertising won't be disappointed."

     Both the print and broadcast spots concentrate on the color of these new
cars, and the unique and exclusive way they can be purchased.

    "It's all about the color," she said.

    One of the most unique parts of the campaign is something more akin to
major league baseball than cars.  With the introduction of the Limited Color
Edition New Beetles, Volkswagen will begin issuing trading cards with the
purchase of these cars.

    Issuing them as collector items, Volkswagen will print only a limited
number of trading cards.  Cards feature photography of the Vapor Blue and
Reflex Yellow New Beetles with interesting New Beetle facts and features on
the backsides.  They come in a sealed packet of ten cards.

    Volkswagen will issue the cards to the people who purchase the cars and a
few early prospects on vw.com.

    Limited edition buyers also will receive a commemorative certificate
specific to the color purchased and to the car's vehicle identification
number.

    "We believe the trading card concept is unique, hot, and something we can
continue to expand in the future," she said.  "You will see Volkswagen trading
cards that will depict scenes from our most famous advertisements and other
car models past and present.  We are even looking at putting bubble gum in the
packets -- a tradition that is sadly missing in today's cards."