VW Auto Loan Trust 2023-1 Files 10-K, Trustee Faces RMBS & Student Loan Suits

TL;DR

**Holders of Volkswagen Auto Loan Enhanced Trust 2023-1 notes should monitor the Indenture Trustee's legal battles, as they represent an indirect, yet material, operational risk to the trust's administration.**

AI Summary

The Volkswagen Auto Loan Enhanced Trust 2023-1 filed its 10-K for the fiscal year ended December 31, 2025, primarily as a pass-through entity for asset-backed securities. The filing indicates that the trust's primary function is to hold and service auto loans originated by VW Credit, Inc. As a securitization vehicle, the trust itself does not report traditional revenue or net income figures; instead, its performance is tied to the underlying auto loan pool. Key business changes are not applicable as the trust's structure is static, focusing on the administration of existing asset-backed notes and certificates. The main risks highlighted involve ongoing litigation against U.S. Bank Trust Company, National Association, in its capacity as Indenture Trustee, specifically regarding residential mortgage-backed securities (RMBS) and student loan-backed securities (DSTs), which could indirectly impact the trustee's ability to perform its duties for this trust. Strategically, the trust's outlook remains focused on the diligent servicing of its auto loan portfolio and compliance with regulatory requirements, as evidenced by the Servicer Compliance Statement and Attestation Reports from Baker Tilly US, LLP and Ernst & Young LLP.

Why It Matters

This 10-K filing provides transparency into the operational health of the Volkswagen Auto Loan Enhanced Trust 2023-1, a critical component of Volkswagen's financing ecosystem. For investors holding the asset-backed notes, the ongoing litigation against U.S. Bank Trust Company, National Association, as Indenture Trustee, introduces a potential, albeit indirect, risk to the trust's administrative stability, even though the lawsuits are unrelated to auto loans. Employees of VW Credit, Inc. and U.S. Bank Trust Company, National Association, are indirectly affected by the scrutiny and compliance requirements. The broader market for asset-backed securities watches these filings for signs of systemic risk or operational issues within key financial institutions, especially given the competitive landscape in auto financing where trust integrity is paramount.

Risk Assessment

Risk Level: medium — The risk level is medium due to the significant ongoing litigation against U.S. Bank Trust Company, National Association, in its capacity as Indenture Trustee. Specifically, the trustee is a defendant in lawsuits concerning residential mortgage-backed securities (RMBS) and student loan-backed securities (DSTs), such as 'The National Collegiate Student Loan Master Trust I, et al. v. U.S. Bank National Association, et al., C.A. No. 2018-0167-JRS (Del. Ch.)'. While these cases are not directly related to the Volkswagen Auto Loan Enhanced Trust 2023-1, they could impact the trustee's operational capacity or financial stability, potentially affecting its ability to fulfill its duties to the trust.

Analyst Insight

Investors should review the details of the litigation against U.S. Bank Trust Company, National Association, to assess any potential indirect impact on the Volkswagen Auto Loan Enhanced Trust 2023-1. While the Servicer and Indenture Trustee reported compliance with servicing criteria, the ongoing legal challenges warrant close monitoring for any adverse developments that could affect the trust's administration or the trustee's financial health.

Financial Highlights

debt To Equity

Not Applicable

revenue

Not Disclosed

operating Margin

Not Applicable

total Assets

Not Disclosed

total Debt

Not Disclosed

net Income

Not Applicable

eps

Not Applicable

gross Margin

Not Applicable

cash Position

Not Disclosed

revenue Growth

Not Applicable

Key Numbers

• 2025 — Fiscal Year End (The period covered by this 10-K filing.)
• 0001976946 — Central Index Key Number (Identifies Volkswagen Auto Loan Enhanced Trust 2023-1 with the SEC.)
• 0001182534 — Central Index Key Number (Identifies Volkswagen Auto Lease/Loan Underwritten Funding, LLC with the SEC.)
• 0000833733 — Central Index Key Number (Identifies VW Credit, Inc. with the SEC.)
• March 26, 2026 — Filing Date (Date the 10-K was filed with the SEC.)
• March 9, 2018 — Date of Lawsuit Filing (Date 'The National Collegiate Student Loan Master Trust I, et al. v. U.S. Bank National Association, et al.' was filed.)
• C.A. No. 2018-0167-JRS — Case Number (Identifies the NCMSLT Action in the Delaware Court of Chancery.)
• November 7, 2018 — Court Ruling Date (Date the Delaware Court of Chancery ruled to stay the NCMSLT Action.)
• January 21, 2020 — Court Order Date (Date the Delaware Court of Chancery ordered consolidation of NCMSLT Action with other lawsuits.)

Key Players & Entities

• Volkswagen Auto Loan Enhanced Trust 2023-1 (company) — Issuing Entity
• VW Credit, Inc. (company) — Sponsor, Originator, Servicer, and Administrator
• Volkswagen Auto Lease/Loan Underwritten Funding, LLC (company) — Depositor
• U.S. Bank Trust Company, National Association (company) — Indenture Trustee
• Citicorp Trust Delaware, National Association (company) — Issuer Delaware Trustee
• Citibank, N.A. (company) — Owner Trustee
• Garett Miles (person) — Head of Securitization and Assistant Treasurer of VW Credit, Inc.
• Baker Tilly US, LLP (company) — Public accounting firm for VW Credit, Inc.'s Attestation Report
• Ernst & Young LLP (company) — Public accounting firm for U.S. Bank Trust Company, National Association's Attestation Report
• Delaware Court of Chancery (regulator) — Court where NCMSLT Action is pending

FAQ

Risk Factors

• Litigation Impacting Indenture Trustee [medium — legal]: The trust faces indirect risk from ongoing litigation against U.S. Bank Trust Company, National Association, in its capacity as Indenture Trustee. Specifically, litigation concerning residential mortgage-backed securities (RMBS) and student loan-backed securities (DSTs), such as the 'The National Collegiate Student Loan Master Trust I, et al. v. U.S. Bank National Association, et al.' case (C.A. No. 2018-0167-JRS), could potentially impair the trustee's ability to fulfill its duties for this auto loan trust.
• Servicer Performance [medium — operational]: The trust's performance is directly tied to the servicing of the underlying auto loan pool by VW Credit, Inc. Any operational failures or inefficiencies in loan origination, collection, or administration by the servicer could negatively impact the trust's cash flows and the value of the asset-backed securities.
• Compliance with Securitization Regulations [low — regulatory]: As an asset-backed securitization vehicle, the trust must adhere to various regulatory requirements related to financial reporting, disclosure, and the servicing of financial assets. Non-compliance could lead to penalties and reputational damage.

Industry Context

The auto loan securitization market is a significant component of the broader asset-backed securities (ABS) landscape. It allows originators like VW Credit, Inc. to access funding by pooling loans and issuing securities backed by them. The industry is sensitive to economic conditions, interest rate fluctuations, and consumer credit quality. Competition among originators and the availability of diverse funding sources influence market dynamics.

Regulatory Implications

Securitization vehicles like Volkswagen Auto Loan Enhanced Trust 2023-1 are subject to regulations governing financial reporting, disclosure, and the conduct of servicers and trustees. The ongoing litigation against U.S. Bank Trust Company, National Association, highlights potential systemic risks that could arise from issues in other ABS markets, indirectly impacting the operational stability of this trust.

What Investors Should Do

1. Monitor litigation involving U.S. Bank Trust Company, National Association: Assess any developments in the RMBS and DST cases, as adverse rulings could impact the trustee's capacity and potentially create indirect risks for this trust.
2. Review Servicer Compliance Reports: Pay close attention to the annual attestation reports from Baker Tilly US, LLP and Ernst & Young LLP to ensure VW Credit, Inc. is meeting its servicing obligations effectively.
3. Understand the Trust's Static Structure: Recognize that the trust is a pass-through entity with a fixed pool of assets, meaning its performance is primarily driven by the credit quality and cash flows of the underlying auto loans, rather than dynamic business strategy changes.

Key Dates

• 2025-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K filing.
• 2026-03-26: 10-K Filing Date — Indicates when the annual report was submitted to the SEC, providing the latest financial and operational overview.
• 2018-03-09: Lawsuit Filing Date — Commencement of the litigation involving U.S. Bank Trust Company, National Association, which poses an indirect risk to the trust.
• 2018-11-07: Court Ruling Date — The Delaware Court of Chancery ruled to stay the NCMSLT Action, impacting the progression of the lawsuit against the trustee.
• 2020-01-21: Court Order Date — The Delaware Court of Chancery ordered the consolidation of the NCMSLT Action with other lawsuits, potentially affecting the scope and duration of legal proceedings involving the trustee.

Glossary

Pass-through entity

An entity that passes income, losses, deductions, and credits through to its investors for both tax and accounting purposes. The entity itself does not pay income tax. (Explains the fundamental structure of the Volkswagen Auto Loan Enhanced Trust 2023-1, indicating it does not generate its own revenue or profit but facilitates the flow of funds from the underlying loans to security holders.)

Asset-backed securities (ABS)

Securities whose value and income payments are derived from and collateralized by a specified pool of underlying assets. In this case, the assets are auto loans. (Defines the primary financial instruments issued by the trust, highlighting that the trust's performance is directly linked to the quality and cash flows of the auto loan pool.)

Indenture Trustee

A trustee appointed to represent the interests of bondholders in a debt issuance. The trustee holds the collateral and ensures the issuer complies with the terms of the indenture agreement. (Crucial for understanding the legal risks, as U.S. Bank Trust Company, National Association, acting in this role for other trusts, is involved in litigation that could indirectly affect its capacity to serve this trust.)

Servicer

The entity responsible for managing the day-to-day operations of the underlying assets, such as collecting payments, handling delinquencies, and distributing funds to the trust. (Identifies VW Credit, Inc. as the key operational party. The servicer's performance is critical to the trust's financial health.)

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), that gives a comprehensive summary of a company's financial performance. (The document type being analyzed, providing the official disclosure of the trust's structure, risks, and operational context for the fiscal year.)

Year-Over-Year Comparison

As this is the first 10-K filing for the Volkswagen Auto Loan Enhanced Trust 2023-1, a year-over-year comparison of financial metrics is not applicable. The filing establishes the baseline for the trust's structure and operational context. Key risks identified relate to ongoing litigation impacting the Indenture Trustee, which is a new factor to monitor for investors in this trust.

Filing Documents

• tm261240d1_10k.htm (10-K) — 54KB
• tm261240d1_ex31-1.htm (EX-31.1) — 7KB
• tm261240d1_ex33-1.htm (EX-33.1) — 54KB
• tm261240d1_ex33-2.htm (EX-33.2) — 71KB
• tm261240d1_ex34-1.htm (EX-34.1) — 9KB
• tm261240d1_ex34-2.htm (EX-34.2) — 6KB
• tm261240d1_ex35-1.htm (EX-35.1) — 5KB
• image_001.jpg (GRAPHIC) — 10KB
• tm261240d1_ex34-1img002.jpg (GRAPHIC) — 4KB
• tm261240d1_ex34-2img002.jpg (GRAPHIC) — 7KB
• tm261240d1_ex34-2img001.jpg (GRAPHIC) — 5KB
• 0001104659-26-035003.txt ( ) — 243KB

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments. Not Applicable.

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. Not Applicable. PART II THE FOLLOWING ITEMS HAVE BEEN OMITTED IN ACCORDANCE WITH GENERAL INSTRUCTION J(1) TO FORM 10-K: (A) Item 5 Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. (B) Item 6 [Reserved] (C) Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations. (D) Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. (E) Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data. (F) Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. (G) Item 9A

Controls and Procedures

Controls and Procedures.

Other Information

Item 9B. Other Information. None.

Disclosure Regarding Foreign Jurisdictions that Prevent

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. Not Applicable. PART III THE FOLLOWING ITEMS HAVE BEEN OMITTED IN ACCORDANCE WITH GENERAL INSTRUCTION J(1) TO FORM 10-K: (A) Item 10 Directors, Executive Officers and Corporate Governance. (B) Item 11

Executive Compensation

Executive Compensation. (C) Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. (D) Item 13 Certain Relationships and Related Transactions, and Director Independence. (E) Item 14 Principal Accountant Fees and Services. PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules. (a) (1) Not applicable. (2) Not applicable. (3) The exhibits filed in response to Item 601 of Regulation S-K are listed in the Exhibit Index. (b) The exhibits filed in response to Item 601 of Regulation S-K are listed in the Exhibit Index. (c) None.

Form 10-K Summary

Item 16. Form 10-K Summary. Not Applicable. SUBSTITUTE INFORMATION PROVIDED IN ACCORDANCE WITH GENERAL INSTRUCTION J(2) TO FORM 10-K:

(b) of Regulation AB. Significant Obligors of Pool

Item 1112(b) of Regulation AB. Significant Obligors of Pool Assets (Financial Information). Not Applicable.

(b)(2) of Regulation AB. Credit Enhancement and Other

Item 1114(b)(2) of Regulation AB. Credit Enhancement and Other Support, Except for Certain Derivatives Instruments (Information Regarding Significant Enhancement Providers). Not Applicable.

(b) of Regulation AB. Certain Derivatives Instruments

Item 1115(b) of Regulation AB. Certain Derivatives Instruments (Financial Information). Not Applicable.

of Regulation AB. Legal Proceedings

Item 1117 of Regulation AB. Legal Proceedings. Except as described below, no legal proceedings are pending against any of VW Credit, Inc. (in its capacity as the sponsor (the “Sponsor”), in its capacity as an originator contemplated by Item 1110(b) of Regulation AB (the “Originator”), in its capacity as servicer (the “Servicer”) and in its capacity as administrator of Volkswagen Auto Loan Enhanced Trust 2023-1 (the “Issuing Entity”)), Volkswagen Auto Lease/Loan Underwritten Funding, LLC (the “Depositor”), U.S. Bank Trust Company, National Association (the “Indenture Trustee”), Citicorp Trust Delaware, National Association (the “Issuer Delaware Trustee”), Citibank, N.A. (the “Owner Trustee”), or the Issuing Entity or of which any property of the foregoing is the subject that are or would be material to holders of the asset-backed notes (the “Notes”) or the asset-backed certificate (the “Certificate”). No such proceedings are known to be contemplated by governmental authorities. VW Credit and its affiliates are parties to, or are periodically otherwise involved in, reviews, investigations, and proceedings (both formal and informal), and information gathering requests by various federal, state and local government authorities. Indenture Trustee Litigation U.S. Bank Trust Company, National Association, as the Indenture Trustee, has provided the following information for inclusion in this report on Form 10-K: U.S. Bank N.A. and other large financial institutions have been sued in their capacity as trustee or successor trustee for certain residential mortgage-backed securities (“RMBS”) trusts. The complaints, primarily filed by investors or investor groups against U.S. Bank N.A. and similar institutions, allege the trustees caused losses to investors as a result of alleged failures by the sponsors, mortgage loan sellers and servicers t

of Regulation AB. Affiliations and Certain Relationships

Item 1119 of Regulation AB. Affiliations and Certain Relationships and Related Transactions. Information required by Item 1119 of Regulation AB has been omitted from this report on Form 10-K in reliance on the Instruction to Item 1119.

of Regulation AB. Compliance with Applicable Servicing

Item 1122 of Regulation AB. Compliance with Applicable Servicing Criteria. The Servicer and the Indenture Trustee (collectively, the “Servicing Parties”) have each been identified by the Depositor as parties participating in the servicing function with respect to the asset pool held by the Issuing Entity. Each of the Servicing Parties has completed a report on an assessment of compliance with the servicing criteria set forth in paragraph (d) of Item 1122 of Regulation AB applicable to it (each, a “Servicing Assessment Report”), which Servicing Assessment Reports are attached as exhibits to this Form 10-K. In addition, each of the Servicer and the Indenture Trustee has provided an attestation report (each, an “Attestation Report”) by a registered public accounting firm, which reports are also attached as exhibits to this Form 10-K. Neither the Indenture Trustee’s Servicing Assessment Report nor the Indenture Trustee’s Attestation Report has identified any material instance of noncompliance with the servicing criteria applicable to the Indenture Trustee. The Servicer complied in all material respects with the servicing criteria applicable to it.

of Regulation AB. Servicer Compliance Statement

Item 1123 of Regulation AB. Servicer Compliance Statement. The Servicer has completed a statement of compliance with its activities during the reporting period and of its performance under the applicable servicing agreement (a “Compliance Statement”), signed by an authorized officer of the Servicer. The Compliance Statement is attached as Exhibit 35.1 to this Form 10-K. EXHIBIT INDEX Exhibit 31.1 Certification of Senior Officer in Charge of the Servicing Function of the Servicer Pursuant to Rule 15d-14(d). Exhibit 33.1 Report on Assessment of Compliance with Applicable Servicing Criteria of VW Credit, Inc. Exhibit 33.2 Report on Assessment of Compliance with the Servicing Criteria of U.S. Bank Trust Company, National Association. Exhibit 34.1 Attestation Report on Assessment of Compliance with the Servicing Criteria of Baker Tilly US, LLP, on behalf of VW Credit, Inc. Exhibit 34.2 Attestation Report on Assessment of Compliance with the Servicing Criteria of Ernst & Young LLP, on behalf of U.S. Bank Trust Company, National Association. Exhibit 35.1 Annual Servicer Compliance Statement of the Servicer for the year ended December 31, 2025.

SIGNATURES

SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Depositor has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. March 26, 2026 VOLKSWAGEN AUTO LOAN ENHANCED TRUST 2023-1 By: VW Credit, Inc., as Servicer By: /s/ Garett Miles Garett Miles Head of Securitization and Assistant Treasurer (senior officer in charge of the servicing function)

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