WASHINGTON, D.C. — Volkswagen AG announced on March 17 it would extend warranty protection for the use of biodiesel blend fuel in all of its U.S. market diesel-powered automobiles. The warranty protection, which covers biodiesel blends of up to 5 percent (B5). This announcement represents the first major initiative to emerge from the Joint Research Agreement on Biodiesel established by Volkswagen and Archer Daniels Midland Co. (ADM) last year. "Our decision to extend warranty coverage for diesel engines fueled by the B5 biodiesel blend is driven by the shared desire of VW and ADM to capitalize on the significant environmental, economic, and quality-related benefits of increased biodiesel usage," said Frank Witter, CEO of Volkswagen of America. Witter added that, "Volkswagen and ADM are now focused on jointly testing a blend of 20 percent biodiesel or B20 in order to provide ever-cleaner alternative and sustainable fuel choices." Biodiesel is a fuel made from natural and renewable resources such as soybean oil. According to VW, the use of clean burning biodiesel, which can power conventional diesel engines, is environmentally friendly and substantially reduces emissions of unburned hydrocarbons, carbon monoxide, and particulate matter.

Originally posted on Fleet Financials