Volkswagen of America, Inc

Text (OCR of the scan at left; may contain errors)

IN THE MATTER OF VOLKSWAGEN OF AMERICA, INC.

CONSENT ORDER, ETC., IN REGARD TO ALLGED VIOLATION OF SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT Docket C-090. Complaint, May 1982 Decision May, 1982 This consent order requires, among other things, a Warren, Mich. producer and seller of motor vehicles and replacement part to cease including in owners manuals for diesel motor vehicles any instructions for oil fiter installation that differs from that provided to its dealers. Respondent is required to include in future maintenence manuals a conspicuous statement warning of the nee to follow oil fiter installation instructions carefully to avoid serious engine damage. Further, the firm is required to reimburse current and past owners of 1977-1981 Volkswagen and Audi diesels for repairs which resulted from oil filter leaks; notify these owners of the reimbursement offer by first clas mail; and provide them with currently recommended oil fiter installation information. Additionally, respondent is required to locate and pay reimbursement to eligible owners in a timely manner and maintain specified records for a period of three years.

Appearances For the Commission: Stephen H. Meyer. For the respondent: N. Richard Skipper, Jr. in-house counsel, Warren, Mich. and Gerhard P. Riechel in-house counsel, Englewood Cliffs, N.

COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and by virtue of the authority vested in it by said Act, the Federal Trade Commission, having reason to believe that Volkswagen of America, Inc., a corporation subject to the Commission s jurisdiction hereinafter sometimes referred to as respondent VW oA, has violated the provisions of said Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest hereby issues its complaint stating its charges in that respect as follows:

PARAGRAPH 1. Respondent Volkswagen of America, Inc., is a corporation organized, existing, and doing business under and by virtue of the laws of the State of New Jersey with its principal offce and place of business located at 27621 Parkview Road, Warren Michigan.

PAR. 2. Respondent VWoA is now and has been engaged in the 446 Complaint production, distribution, offering for sale or sale of vehicles or vehicle parts.

PAR. 3. Respondent VWoA maintains and has maintained a substantial course of business, including the acts and practices alleged in this complaint, in or affecting commerce, as I'commerce " is defined in the Federal Trade Commission Act. PAR. 4. An abnormally high number of Volkswagen and Audi vehicles sold in the United States beginning in the 1977 model year and equipped with diesel engines have experienced, are experiencing, or are likely to experience oil fiter leaks. Such oil fiter leaks have caused engine problems and engine failures resulting from lack of lubricating oil which are costly to correct or may significantly affect the quality, reliabilty, durability, or performance of the vehicles.

PAR. 5. Respondent knew or should have known that the oil filter leaks described in Paragraph Four above have occurred in abnormally high numbers.

PAR. 6. Respondent stated the following as part of the recommended oil filter installation procedure in its owner s manuals for its 1977 and 1978 model year vehicles equipped with diesel engines: Tjghten new fiter by hand as tightly as possible. Do not use a wrench to tighten filter. PAR. 7. Respondent stated the following as part of the recommended oil filter installation procedure in its owner s manuals for its 1979 and 1980 model year vehicles equipped with diesel engines: Only hand-tighten according to filter manufacturer s instructions on the cartn or on the fiter element.

PAR. 8. Respondent has notified its dealers about oil fiter leaks on its vehicles equipped with diesel engines and, to reduce the likelihood of oil fiter leaks, has sent revised oil fiter installation instructions for vehicles equipped with diesel engines to its dealers. The revised installation instructions, which prescribe precise installation procedures using specified wrenches, contradict directions contained in the owner s manuals for the 1977-1980 model year vehicles equipped with diesel engines.

PAR. 9. Respondent has failed and is failing to disclose to owners of 1977-1980 Volkswagen and Audi vehicles equipped with diesel engines the following facts:

1. the likelihood of oil filter leaks on its diesel engines 2. the revised installation instructions described in Paragraph Eight, and Decision and Order 99 F. 3. the reduced likelihood of oil fiter leaks if the revised installation instructions are carefully followed. These facts relate to the existence, nature, extent, or prevention of oil fiter leaks on diesel vehicles.

PAR. 10. The facts described in Paragraph Nine above are material to many owners because such facts, if known, would be likely to affect their decisions concerning the maintenance, repair use or care of Volkswagen and Audi vehicles. PAR. 11. Respondent has failed and is failng to disclose material facts to owners of Volkswagen and Audi vehicles. PAR. 12. The acts and practices of respondent in failing to disclose material facts have had and continue to have the capacity and the tendency to mislead many members of the public, particularly those who own Volkswagen and Audi vehicles. PAR. 13. The acts and practices ofrespondent also have caused or continue to cause substantial economic harm to many members of the public who have paid or continue to pay for engine repairs which they might not otherwise have purchased if respondents had adequately disclosed such material facts. PAR. 14. The acts and practices of respondent has caused or continues to cause substantial economic harm to many members of the public who do not take preventive measures which they might take if such material facts were adequately disclosed. PAR. 15. The acts and practices of respondent in failing to disclose material facts as alleged herein were and are all to the prejudice and injury of the public and of respondent's competitors and constituted, and now constitute, unfair methods of competition and unfair or deceptive acts or practices in or affecting commerce, in violation of Section 5 of the Federal Trade Commission Act, as amended.

DECISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondent named in the caption hereof, and the respondent having been furnished thereafter with a copy of a draft of complaint which the Bureau of Consumer Protection proposed to present to the Commission, would charge respondent with violation of the Federal Trade Commission Act; and The respondent, its attorneys, and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondent of all the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the 446 Deision and Order signing of said agreement is for settlement purposes only and does not constitute an admission by respondent that the law has been violated as alleged in such complaint, and waivers and other provisions as required by the Commission s Rules; and The Commission having thereafter considered the matter and having determined that it has reason to believe that the respondent has violated the said Act, and that complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of sixty (60) days, and having duly considered the comments fied thereafter by interested persons pursuant to Section 34 of its Rules, now in further conformity with the procedure prescribed in Section 2.34 of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings and enters the following order:

1. Respondent Volkswagen of America, Inc. is a corporation organized, existing and doing business under and by virture of the laws of the State of New Jersey, with its office and pricipal place of business located at 27621 Parkview Road, in the City of Warren State of Michigan.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

Orner For purposes of this order, the following definitions shall apply: 1. Dealer shall mean any authorized United States Volkswagen or Audi dealer regardless of whether the dealer purchases vehicles directly from respondent or from a distributor of respondent. 2. Owner shall mean any individual or entity in whose name a vehicle is currently or has been previously registered or titled with the appropriate state authority, including, but not limited to vehicles held for resale.

3. Current owner shall mean any owner in whose name a vehicle is registered or titled with the appropriate state authority. Respondent shall use anyone or more of the following methods to obtain the most up to date and complete list available of the names and addresses of current owners in carrying out it obligations under Parts I and III of this Order: state records, a commercial locator service, or respondent's records. If the name and address of the current owner cannot be ascertained, then current owner shall also Decision and Order 99 F. T. mean the most recent purchaser known to respondent, respondent' dealers, or both.

4. Engine repairs due to oil filter leaks shall consist of expenses necessitated by an oil filter leak for engine repair or engine replacement, plus towing charges, oil and oil filter replacement. It does not include reimbursement for towing charges, oil, and replacement oil filter(s) if no engine repair or engine replacement was undertaken.

5. oil filter leak(s) shall mean any leakage of lubricating oil from the oil fiter or from the area where the oil filter is attached to the engine.

PART I It is ordered That respondent Volkswagen of America, Inc., a corporation, its successors and assigns, and its officers, agents representatives, and employees, directly or indirectly or through any corporation. subsidiary, division, or other device, in connection with the manufacturer, advertising, offering for sale, sale or distribution of any vehicle or vehicle part, in or affecting commerce, as commerce" is defined in the Federal Trade Commission Act, as amended, do forthwith cease and desist from representing in any owner s manual for its diesel engine vehicles an oil fiter installation procedure that is different in substance from that provided to its dealers with respect to vehicles covered by such manual, unless respondent notifies affected current owners via first class mail that the installation procedure set out in their owner s manuals is different in substance from that provided to respondent' s dealers and in what respects the instructions differ. PART II It is further ordered That respondent Volkswagen of America Inc., a corporation, its successors and assigns, and its officers, agents representatives, and employees, directly or indirectly or through any corporation, subsidiary, division, or other device, in connection with the manufacture, advertising, offering for sale, sale or distribution of any vehicle or vehicle part, in or affecting commerce, as !Icommerce is defined in the Federal Trade Commission Act, as amended, shall: A. Include, verbatim, using distinctive and conspicuous type face or ink color or both, which shall be at least as distinctive and conspicuous as the type face or ink color or both used elsewhere in owner s manuals for important maintenance items, the following 446 Deision and Order statement in owner s manuals of Volkswagen and Audi vehicles with diesel engines beginning in the 1982 model year: FOLWW THESE INSTRUCTIONS CAREFULLY. AN IMPROPERLY INSTALLED FILTER MAY LEAK AND DAMAGE YOUR ENGINE.

B. Beginning 30 days following the date this order is served on respondent, print clearly and conspicuously on all oil fiters which are sold by respondent and which are recommended for application on respondent's diesel engine vehicles:

I. the most current installation instructions; and 2. the following statement, verbatim:

IMPORTANT.' FOLWW THESE INSTRUCTIONS CAREFULLY. AN IMPROPERLY INSTALLED FILTER MAY LEAK AND DAMAGE YOUR ENGINE. C. Disseminate, by respondent's usual methods, within 30 days following the date this order is served upon respondent, a Product Circular to Volkswagen and Audi dealers which effectively communicates the following:

1. that oil fiter leaks on diesel engines have occurred; and 2. that mechanics should be sure to install the filters according to the most current procedures.

PART III It is further ordered That respondent, within 30 days following the service of this order on respondent, shall: A. Send by first class mail to each current owner of a 1977 through 1981 model year Volkswagen and Audi vehicle equipped with a diesel engine a copy of Exhibits A, Band E and a postage-paid self-addressed return envelope.

B. Send by first-class mail a copy of Exhibits B, C and E and a postae-paid self-addressed return envolope to any owner of a 1977 through 1981 model year Volkswagen or Audi vehicle equipped with a diesel engine who requests information concerning reimbursement for oil fiter leaks.

C. Search its warranty and complaint records and those of its distributors to ascertain the names and addresses of owners who had previously complained about and not received full reimbursement for engine repairs due to oil fiter leaks on diesel engines. Owners whose names appear on any such records shall be sent by first class mail Exhibits B, D1, and E and a postage-paid self-addressed return Decision and Order 99 F. envelope; provided, however that where records clearly establish an owner s entitlement to and amount of reimbursement under Part IV of this order, respondent shall send a check for such amount and Exhibits D2, B, and E.

PART IV It is further ordered That respondent:

A. Provide reimbursement to each owner of a 1977 through 1981 model year Volkswagen or Audi vehicle equipped with a diesel engine who has unreimbursed expenses for engine repairs due to an oil fiter leak, which occurred prior to 30 days after the owner receipt of a letter sent pursuant to Parts III A, B or C of the order or 60 days after the date of mailing of such letter, whichever comes first; provided, however that respondent need not reimburse an owner for an engine repair due to an oil filter leak if the oil fiter on the vehicle at the time of the leak had not been distributed by respondent, unless the leak was proximately caused by a Voll,swagen or Audi original equipment or replacement part for which repair however thator replacement was necessary; provided, further, respondent may deny reimbursement to owners whose initial request in writing for reimbursement is received more than two (2) years after the date this order is served upon respondent or more than six (6) months after the owner has received a letter pursuant to Part III A, B, or C of this order, whichever comes first. B. Shall pay full reimbursement for engine repairs due to an oil filter leak upon presentation by an owner of reasonable evidence that the owner is eligible for reimbursement pursuant to Part IV A above; provided, however respondent may perform a documented inquiry concerning a claim if it believes for good cause that the owner may not be eligible to receive the amount claimed by the owner. Such an inquiry must begin and any request that an owner provide further information must be sent within 30 days after the owner has mailed a copy of Exhibit B to respondent or otherwise requested reimbursement in writing.

C. Shall within the 30 days set out in Part IV B mail to the owner a check for the amount claimed by the owner unless: 1. respondent both begins an inquiry and notifies the owner in writing that an inquiry is being conducted; or 2. respondent denies reimbursement for some or all of the amount claimed by the owner, and sends the owner a letter pursuant to Part IV F, below.

446 Decision and Order Shall complete each inquiry conducted pursuant to Part IV B: 1. within sixty (60) days after the owner has mailed a copy of Exhibit B to respondent or otherwise requested reimbursement in writing; or 2. within thirty (30) days following the mailng to respondent of any response to a request for additional information sent to an owner as part of an inquiry conducted pursuant to Part IV B whichever is later.

E. Shall, upon completion of each inquiry, send the owner a check, a letter pursuant to Part IV F, or both. F. Shall send a letter by first class mail to each owner who has been denied reimbursement for some or all of the amount claimed by the owner. This letter shall:

1. notify the owner of the disposition of the claim; 2. give specific reasons for the disposition; 3. inform the owner that he/she may have other legal rights; 4. if available in the area where the owner lives, inform the owner of the existence of the Better Business Bureau Arbitration program and the following:

a. that the program is operated free of charge to the owner; b. that by choosing arbitration both parties may give up the right to have the facts of the dispute decided in court; c. that the arbitrator s decision is binding and may be enforced in court;

d. that the arbitrator s decision can be appealed only for limited reasons; and e. that owners who want more information should contact their local Better Business Bureau; and 5. inform the owner that the oil fiter reimbursement program is being conducted by agreement between Volkswagen of America and the Federal Trade Commission, and that if he/she believes his claim was improperly denied he/she may contact the FTC's Compliance Division of the Bureau of Consumer Protection at 6th and Pennsylvania Avenue, N. , Washington, D.C. 20580. PART V It is further ordered That respondent shall maintain accurately and retain for a period of three (3) years following the service of this Deision and Order 99 F.

order on respondent the following records which may be inspected by Commission staff members upon fifteen (15) days' notice: 1. a list, by state and, for each state, in alphabetical order, (or a data base from which such list may be readily compiled) containing the names and addresses of each owner of a Volkswagen and Audi vehicle to whom Exhibits A-E were sent and the dates such letters were sent to each;

for each state, in alphabetical order 2. a list, by state and, containing the name and address of each owner of a Volkswagen or Audi vehicle who received a check pursuant to Part IV C and each owner who requested reimbursement from respondent pursuant to Exhibit B or another writing and, for each, the date such request was received by respondent, the total dollar amount of such request. Respondent shall also maintain all documents initially submitted by applicable to such owner:owners and each of the following as documents indicating whether follow-up information was requested and the date such information was requested; all additional information submitted in response to any request for follow-up information and the date such information was received; documents relating to any inquiry by respondent of the circumstances surrounding such owner s claim; all documents indicating the total dollar amount of reimbursement, if any, such owner was sent, the date it was sent and a copy of the notice of final disposition of the claim, if sent to such owner.

PART VI It is further ordered, That any and all correspondence sent by respondent pursuant to the provisions of this order shall be on respondent' s corporate stationery. All envelopes sent pursuant to s name and Part III shall contain no marking other than respondent' return address, the postage marking, the name and address of the addressee, and the words "IMPORTANT MAINTENANCE AND REIMBURSEMENT INFORMATION" disclosed conspicuously on the front.

PART VII It is further ordered, That respondent shall send a copy of this order to each of its dealers.

446 Decision and Order PART VIII It is further ordered That no provision of this order shall be construed to limit, in any way, any private right of action which any individual, partnership, corporation or other entity might have against respondent or against any oil fiter manufacturer. PART IX It is further ordered That the respondent shail forthwith distrib. ute a copy of this order to each of its operating divisions, to its successors and assigns.

PART X It is further ordered That for so long as any other provisions of this order remain in effect respondent notify the Commission at least thirty (30) days prior to the effective date of any proposed change in the respondent such as dissolution, assignment or sale, resulting in the emergence of a successor corporation, the creation or dissolution of subsidiaries, or any other change in the corporation which may affect compliance obligations arising out of the order. PART XI It is further ordered That respondent shail within sixty (60) days after service upon it of the order, and also annually for two (2) years thereafter, file with the Commission reports in writing, setting forth in detail the manner and form in which it has complied with this order.

PART XII It is further ordered That Parts I and II A and B of the order shall terminate at any time if 1. respondent's oil filter installation instructions do not provide for any wrenches or special tools to tighten the filter, and 2. respondent possesses competent and reliable engineering evidence which substantiates that the installation of the oil fiter without the use of wrenches or special tools under normal field conditions would be substantially as effective in preventing oil fiter leaks as installation of the fiter with wrenches or special topls. Decision and Order 99 F. EXHIBIT A IMPORTANT MAINTENANCE AND REIMBURSEMENT INFORMATION Dear (Volkswagen) (AudiJ Diesel Owner:

Some (Volkswagen) (Audi) diesel owners have reported oil leaks in the oil fiter area of the engine. On occasion, this can lead to severe engine damage. Therefore d like to tell you some important news about: new recommendations for oil fiter installation procedures which can help prevent oil fiter leak problems, and our reimbursement offer for past problems and warranty coverage for future problems like this.

INSTALLATION INSTRUCTIONS ve modified the diesel oil filter instructions to emphasize that the fiter must be properly mounte and tightened. You or the mechanic must follow these instructions carefully to guard against oil leaks. Use the correct tols to tighten the filter and check the mounting torque. These new instructions are enclosed. Please staple them to the cover of you.r owner s manual and make sure they are followed each time an oil filter i. installed.

REIMBURSEMENT OFFER If you paid for engine repairs caused by an oil leak in the fiter area, and were not reimbursed, and the fiter was an Autobahn (V / Audi) fiter, we ll reimburse you for engine repairs. oil, filter, and towing. If the filter was not a VW / Audi/ Autobahn fiter, we ll pay for repairs only if a VW / Audi engine part that had to be repaired or replaced caused the problem. This offer covers engine repairs which occured prior to or within 30 days after you receive this letter. If our coverage doesn t apply to engine repairs you paid for, check to see if the filter manufacturer wil reimburse you for expenses.

Don t forget that your car s warranty may also provide coverage for these and other repair problems in the future. The "new vehicle limited warranty" covers defects in materials and workmanship for (12 months or 20 00 miles, whichever comes first ev)). (12 months, regardless of mileage (Audj)). The "replacement part limited warranty" covers such defects for six months or 6 000 miles. COMPLETE THE ENCWSED FORM If you believe you may be entitled to reimbursement under this program, complete the enclosed form and send it to us. Even if you were previously denied warranty service or if you aren t sure you re eligible, send in the form. Within 30 days, we ll send you a check or contact you with information about the status of your claim. You must send in your form within six months after you receive this letter to t hestitate to qualify for the reimbursement offer. If you have any questions, don contact us or your local dealer.

Sincerely, Volkswagen of America, Inc.

446 Decision and Order EXHIBIT B REIMBURSEMENT REQUEST ENGINE REPAIR DUE TO DIESEL OIL FILTER LEAK INSTRUCTIONS: Make sure you follow these instructions carefully. If we don have enough information your claim might be delayed. Attach to this form legible copies of all the documents you have which support your claim including receipts, repair orders, cancelled checks or money orders. If you don have a repair order, get a short statement from the garage or dealership where the repair was done which tells us what work was done, and why. We wil reimburse you for engine repairs, oil, a new oil fiter, and towing if you qualify for reimbursement. We wil not reimburse you if your only damage was loss of oil and towing.

Name VIN (Preprinted)- City State Zip Code- Phone ( Total Amount Actually Paid:

Brand of Filer To the best of my knowledge, the above claim is for expenses I had to pay for which I was not reimbursed and which resulted from an oil leak from my car s oil fiter. I hereby certify that the above information is true and correct. Signature E SURE TO ENCLOSE ALL YOUR PROOF WH N YOU MAIL US THIS FORM' Date EXHIBIT C IMPORTANT MAINTENANCE AND REIMBURSEMENT INFORMATION Dear rVolkswagen) (AudiJ Diesel Owner:

Thank you for contacting us about oil fiter leaks on our diesel engines. Some (VolkswagenJ rAudi) diesel owners have reported oil leaks in the oil fiter area of the engine. On occasion, this can lead to severe engine damage. Therefore, we d like to tell you some important news about:

new recommendations for oil fiter installation procedures which can help prevent oil fiter leak problems, and our reimbursement offer for past problems and warranty coverage for future problems like this.

INSTALLATION INSTRUCTIONS ve modifed the diesel oil filter instructions to emphasize that the fiter must be properly mounted and tightened. You or the mechanic must follow these instructions carefully to guard against oil leaks. Use the correct tools to tighten the fiter and 458 FEDERAL TRDE COMMISSION DECISIONS Deision and Order 99 F. check the mounting torque. These new instructions are enclosed. Please staple them to the cover of your owner s manual and make sure they are followed each time an oil filter is installed.

REIMBURSEMENT OFFER If you paid for engine repairs caUB by an oil leak in the fiter area, and were not reimbursed, and if the fiter was an Autobahn (VW / Audi) fiter, we ll reimburse you for engine repairs, oil, fiter, and towing. If the fiter was not a VW Audit Autobahn fiter, we )J pay for repairs only if a VW / Audi engine part that had to be replaced cause the problem. This offer covers engine repairs which occured prior to or within 30 days after you receive this letter, If our coverage doen t apply to engine repairs you paid for, check to see if the fiter manufacturer will reimburse you for expenses. Don t forget that your car s warranty may also provide coverage for these and other repair problems in the future. The "new vehicle limited warranty" covers defects in materials and workmanship for (12 months or 20 00 miles, whichever comes first (VW)). (12 months, regardless of mileage (Audi)). The "replacement part limited warranty" covers such defects for six months or 6 00 miles. COMPLETE THE ENCWSED FORM If you believe you may be entited to reimbursement under this program, complete the enclose form and send it to us. Even if you were previously denied warranty service or if you aren t sure you re eligible, send in the form. Within 30 days, we ll send you a check or contact you with information about the status of your claim. You must send in your form within six months after you receive this letter to qualify for this reimbursement offer. If you have any questions, don t hesitate to contact us or your local dealer.

Sincerely, Volkswagen of America, Inc.

EXHIBIT Dl IMPORTANT MAINTENANCE AND REIMBURSEMENT INFORMATION Dear (Volkswagen) (Audi) Diesl Ower:

Our records show that your car has experienced an oil fiter leak. As you may know, on occasion, this can lead to severe engine damage. Therefore, we d like to tell you some important news about:

new recommendations for oil fiter installation procedures which can help prevent oil filter leak problems, and our reimbursement offer for past problems and warranty coverage for future problems like this.

INSTALLATION INSTRUCTIONS ve modified the diesel oil fiter instructions to emphasiz that the fiter must be VOLKSWAGEN OF AMERICA, INC. 459 446 Deision and Order properly mounte and tightened. You or the mechanic must follow these instructions carefully to guard against oil leaks. Use the correct tols to tighten the filter and check the mounting torque. These new instructions are enclos. Please staple them to the couer of your owner s manual and make sure they are followed each time an oil filter is installed.

REIMBURSEMENT OFFER If you paid for engine repairs cause by an oil leak in the fiter area, and were not reimburs, and the filter was an Autobahn (V / Audi) fiter, we ll reimburse you for engine repairs, oil, filter, and towing. If the fiter was not a VW/Audi/Autobahn filter, we ll pay for repairs only if a VW/Audi engine part that had to be replaced caused the problem. This offer covers engine repairs which occured prior to or within 30 days after you receive this letter. If our coverage doesn t apply to engine repairs you paid for, check to see if the fiter manufacturer will reimburse you for expenses. Don t forget that your car s warranty may also provide coverage for these and other repair problems in the future. The "new vehicle limited warranty" covers defects in materials and workmanship for (12 months or 20 00 miles, whichever comes first (V)). (12 months, regardless of mileage (AddU). The "replacement part limited warranty" covers such defects for six months or 6 00 miles. COMPLETE THE ENCWSED FORM If you believe you may be entitled to reimbursement under this program, complete the enclosed form and send it to us. Even if you were previously denied warranty service or if you aren t sure you re eligible, send in the form. Within 30 days, we ll send you a check or contact you with information about the status of your claim. You must send in your form within six months after you receive this letter to qualify for this reimbursment offer. If you have any questions, don t hestitate to contact us or your local dealer.

Sincerely, Volkswagen of America, Inc.

EXHIBIT D2 IMPORTANT REIMBURSEMENT CHECK ENCWSED Dear (Volkswagen) (Audi) Diesl Owner:

Our records show that you experienced engine damage relate to an oil filter leak on your (Volkswagen) (Audi) diesl vehicle and that reimbursement for your repair costs was not made available in your case. We have recently reconsidered your claim. On the basis of our review, we have determined that reimbursement was appropriate and should have ben granted. Accordingly, we are pleased to enclose our check in the amount of $ . We regret the delay. However, we are pleased that we were able to be of asistance. If this amount is less than what you paid for engine repairs due to an oil fiter leak oil, a new oil fiter, and towing, fill out the attached fonn and return it to us in the enclose potae-paid envelope. Even if you request additional reimbursement, you Decision and Order 99 F. can stil cash this check. Within 30 days, we ll send you an additonal check or contact you with information about the status of your claim. Ifyau do request additional reimbursement under this offer, you must send in your form within 6 months after you receive this letter. If you have any questions; don hestitate to contact us or your local dealer. INSTALLATION INSTRUGrIONS ve modified the diesel oil fiter instructions to emphasize that the fiter must be properly mounted and tightened. You or the mechanic must follow these instructions carefully to guard against oil leaks. Use the correct tools to tighten the fiter and check the mounting torque. These new instructions are enclosed. Please staple them to the cover of your owner s manual and make sure they are followed each time an oil filter is installed.

Sincerely, Volkswagen of America, Inc.

EXHIBIT E OIL F1LATER INSTALLATION INSTRUCTIONS 1. Use VW Part No. 068 115 561 or equivalent. (For Owner s Manual and Exhibit Eonly) 2. Apply thin fim of engine oil to fiter gasket. (Do not use grease. 3. Screw on fiter by hand until fiter gasket contacts flange firmly all round. 4. Tighten fiter 3/4 turn. Use VW fiter cap wrench US-496 or equivalent wrench extension, and standard torque wrench. 5. Check dipstick for correct oil level.

6. Run engine at various speeds for 3- minutes. 7. Stop engine, use fiter cap wrench (center drive socket), extension and torque wrench for final check. Torque must be at least 18 ft. lbs. 8. Re-check dipstick for correct oil level, add oil as needed. 9. Start engine and check for proper seal at the oil fiter gasket. IMPORTANT. FOLLOW THESE INSTRUCTIONS CAREFULLY. AN IMPROPERLY INSTALLED FILTER MAY LEAK AND DAMAGE YOUR ENGINE. (Figure I7-AI4 from 1981 Rabbit Owner s Manual, P.93) 461 Interlocutory Or-de!'