Volkswagen AG issued its second securitization via the new True Sale Initiative securitization platform established by 13 banks and the True Sale International GmbH (see ASR 12/6/04). The 1 billion ($1.2 billion) Driver 2 transaction led by BNP Paribas and WestLB includes a three-year revolving period - a feature not present in Volkswagen's inaugural TSI issue.

"It improves the overall costs for the issuer when compared to Driver 1," said a source familiar with the deal. "From a practical point of view it was a very smooth transaction. The driver transactions demonstrate TSI works well with auto loans and it's a template that can be used by other large-volume originators [which] might not have their own programs in place."

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