69EM Driver’s Side Air Bag Inflator May Explode – 2015-2016 Volkswagen Beetle & Beetle Convertible

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OMB Control No.: 2127-0004 Part 573 Safety Recall Report 22V-945 The information contained in this report was submitted pursuant to 49 CFR §573 Manufacturer Name : Volkswagen Group of America, Inc. Submission Date : DEC 21, 2022 NHTSA Recall No. : 22V-945 Manufacturer Recall No. : 69EM Manufacturer Information : Manufacturer Name : Volkswagen Group of America, Inc. Address : 3800 Hamlin Road Auburn Hills MI 48326 Company phone : 1-800-893-5298 Population : Number of potentially involved : 37,558 Estimated percentage with defect : 100 % Vehicle Information : Vehicle 1 : 2015-2016 VOLKSWAGEN BEETLE CONVERTIBLE Vehicle Type : Body Style : Power Train : NR Descriptive Information : The recall population was determined by reviewing production records to identify the vehicles that are equipped with a Takata SDI-D driver frontal airbag inflator. Vehicles not included in this recall were not equipped with the recalled driver frontal airbag module. BEETLE CONVERTIBLE: 14,107 Production Dates : JUN 30, 2014 – JUL 28, 2016 VIN Range 1 : Begin : 3VW517ATXGM800071 End : 3VW517AT5GM823936 ✔ Not sequential Vehicle 2 : 2015-2016 VOLKSWAGEN BEETLE Vehicle Type : Body Style : Power Train : NR Descriptive Information : The recall population was determined by reviewing production records to identify the vehicles that are equipped with a Takata SDI-D driver frontal airbag inflator. Vehicles not included in this recall were not equipped with the recalled driver frontal airbag module. BEETLE: 23.451 Production Dates : JUN 20, 2014 – JUL 29, 2016 VIN Range 1 : Begin : 3VWVS7AT4FM600458 End : 3VWF17AT2GM639106 ✔ Not sequential Part 573 Safety Recall Report 22V-945 Page 2 The information contained in this report was submitted pursuant to 49 CFR §573 Description of Defect : Description of the Defect : The driver’s side airbag inflator may explode due to propellant degradation occurring after long-term exposure to high absolute humidity, high temperatures, and high temperature cycling. Volkswagen and the NHTSA reviewed findings from various sources, including but not limited to a study from TK Global (the successor to TK Holdings, Inc.), on the safety and service life of desiccated Takata airbag inflators. Volkswagen’s internal testing of SDI-D returned parts indicated better performance than the results of other studies, including TK Global’s and did not identify any defects. Nevertheless, in consultation with the NHTSA regarding the Agency’s evaluation of such sources, and out of an abundance of caution, Volkswagen agrees to recall certain vehicles specified herein that contain SDI-D phase-stabilized ammonium nitrate (“PSAN”) airbag inflators, which are desiccated inflators containing 2004 propellant. FMVSS 1 : NR FMVSS 2 : NR Description of the Safety Risk : An inflator explosion may result in sharp metal fragments striking the driver or other occupants resulting in serious injury or death. The Takata SDI-D driver frontal airbag inflators installed in the recalled vehicles currently do not pose an unreasonable risk to motor vehicle safety to drivers of affected vehicles. Based on its prior conversations with NHTSA, Volkswagen understands that the Agency is concerned that after additional time, the airbag inflator may not perform properly in the event of a crash. Out of an abundance of caution, Volkswagen agrees to recall certain vehicles specified herein that contain SDI-D phase-stabilized ammonium nitrate (“PSAN”) airbag inflators, which are desiccated inflators containing 2004 propellant. Description of the Cause : NHTSA investigation on the safety and service life of desiccated Takata airbag inflators regarding SDI-D phase-stabilized ammonium nitrate (“PSAN”) air bag inflators, which are desiccated inflators containing 2004 propellant. Identification of Any Warning that can Occur : NONE Involved Components : Component Name 1 : Driver Airbag Module Component Description : Driver Airbag Module Component Part Number : 5C5.880.201.M Part 573 Safety Recall Report 22V-945 Page 3 The information contained in this report was submitted pursuant to 49 CFR §573 Component Name 2 : Driver Airbag Module Component Description : Driver Airbag Module Component Part Number : 5C5.880.201.N Component Name 3 : Driver Airbag Module Component Description : Driver Airbag Module Component Part Number : 5C5.880.201.P Component Name 4 : Driver Airbag Module Component Description : Driver Airbag Module Component Part Number : 5C5.880.201.Q Supplier Identification : Component Manufacturer Name : TAKATA This company no longer exists) Address : NR NR Country : NR Chronology : January 15, 2020: Meeting to discuss this topic was held between Volkswagen and the NHTSA. January 21, 2020: Follow-up meeting between Volkswagen and the NHTSA. As an outcome of the meeting, the NHTSA clarified its expectation of a recall of all SDI-D inflators in the Volkswagen Beetle and Beetle Convertible vehicles. February 2020 – April 2020: Volkswagen and the NHTSA discussed the terms of a potential recall program internally and between the parties. April 30, 2020 – May 5, 2020: An agreement between Volkswagen and the NHTSA to address the recall of vehicles equipped with Takata SDI-D airbag inflators was reached and fully executed by Volkswagen Group of America, Inc. and the NHTSA. December 9, 2020: Pursuant to the schedule set out in the agreement with the NHTSA, Volkswagen’s Product Safety Committee decided to conduct a safety recall for MY 2012-2014 Volkswagen Beetle and Beetle Convertibles containing SDI-D inflators as original equipment. December 14, 2022: Pursuant to the schedule set out in the agreement with the NHTSA, Volkswagen’s Product Safety Committee decided to conduct a safety recall for MY 2015-2016 Volkswagen Beetle and Beetle Part 573 Safety Recall Report 22V-945 Page 4 The information contained in this report was submitted pursuant to 49 CFR §573 Convertibles containing SDI-D inflators as original equipment. Volkswagen is not aware of any warranty or field claims relating to this issue. Description of Remedy : Description of Remedy Program : The driver frontal airbag will be replaced at no cost to customers. Volkswagen will not offer a reimbursement plan under this recall. How Remedy Component Differs from Recalled Component : The recalled component is the driver frontal airbag. The new part is an airbag not containing ammonium nitrate with numbers 5C5.880.201.AD and 5C5880201AE. Identify How/When Recall Condition was Corrected in Production : Not applicable. The subject vehicles are no longer in production. Recall Schedule : Description of Recall Schedule : Dealers/owners: on or before February 17, 2023 Planned Dealer Notification Date : FEB 17, 2023 – FEB 17, 2023 Planned Owner Notification Date : FEB 17, 2023 – FEB 17, 2023 * NR – Not Reported

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VOLKSWAGEN DEALER COMMUNICATION Ensure all dealership personnel are aware of this notice so they are able to address customer questions. Contact Warranty if you require additional assistance. Direct press inquiries to Volkswagen Public Relations. Volkswagen Customer Protection 69EM_DLR_ADV Advance Notice – Safety Recall 69EM / Driver Frontal Airbag Inflator (Takata SDI-D) This notice is for:  Dealer Principal  General Manager  Sales Managers  Service Manager  Parts Manager  Service Consultant  Warranty Administrator  Technicians Date: January 05, 2023 Issue: The driver’s side airbag inflator may explode due to propellant degradation occurring after long-term exposure to high absolute humidity, high temperatures, and high temperature cycling. An inflator explosion may result in sharp metal fragments striking the driver or other occupants resulting in serious injury or death. Repair:  REPAIR NOT YET AVAILABLE  Check daily campaign open inventory report or OMD for affected vehicles in inventory. Affected Vehicles Country Beginning Model Year Ending Model Year Vehicle Vehicle Count USA 2015 2016 BEETLE 23,451 USA 2015 2016 BEETLE CONVERTIBLE 14,107 CAN 2015 2016 BEETLE 3,116 CAN 2015 2016 BEETLE CONVERTIBLE 1,284 *Counts reflect overall population; some vehicles may have already been repaired. Check Campaigns/Actions screen in Elsa on the day of repair to verify that a VIN qualifies for repair under this action. Elsa is the only valid campaign inquiry & verification source. Notes: IMPORTANT REMINDER: VEHICLES AFFECTED BY SAFETY & COMPLIANCE RECALLS New Vehicles in Dealer Inventory: It is a violation of federal law for a dealer to deliver a new motor vehicle or any new or used item of motor vehicle equipment (including a tire) covered by this notification under a sale or lease until the defect or noncompliance is remedied. By law, dealers must correct, prior to delivery for sale or lease, any vehicle that fails to comply with an applicable Federal Motor Vehicle Safety Standard or that contains a defect relating to motor vehicle safety. Pre-Owned Vehicles in Dealer Inventory: Dealers should not deliver any pre-owned vehicles in their inventory which are involved in a safety or compliance recall until the defect has been remedied. -END OF MESSAGE

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