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Hitler chose to sponsor an all new, state owned factory. The engineer chosen for the task was Ferdinand Porsche. Porsche was the designer of the Mercedes 170H. O
n 22 June 1934, Dr. Ferdinand Porsche agreed to create the "People's Car" for Hitler.
The intention was that ordinary Germans would buy the car by means of a savings scheme (
"
Fünf Mark die Woche musst Du sparen, willst Du im eigenen Wagen fahren
" — "Five Marks a week you must save, If to drive your own car you crave
"), which around 336,000 people eventually paid into
.
The building of the new factory started 26 May 1938 in the new town of KdF-Stadt, now called
Wolfsburg
, which had been purpose-built for the factory workers. This factory had only produced a handful of cars by the time war started in 1939. None was actually delivered to any holder of the completed saving stamp books.
Volkswagens were first exhibited and sold in the United States in 1949, but only sold two units in America that first year. On its entry to the U.S. market, the VW was briefly sold as a "Victory Wagon".
Volkswagen of America
was formed in April 1955 to standardise sales and service in the United States. Production of the Type 1
Volkswagen Beetle
increased dramatically over the years, the total reaching one million in 1955.
Volkswagen advertisements became as popular as the car, using crisp layouts and witty copy to lure the younger, sophisticated consumers with whom the car became associated. Even though it was almost universally known as the Beetle (or the Bug), it was never officially labelled as such by the manufacturer, instead referred to as the Type 1. The first reference to the name Beetle occurred in U.S. advertising in 1968, but not until 1998 and the
Golf
-based
New Beetle
would the name be adopted by Volkswagen
.
Although the car was becoming outdated, during the 1960s and early 1970s, American exports, innovative advertising, and a growing reputation for reliability helped production figures surpass the levels of the previous record holder, the
Ford Model T
. On 17 February 1972 the 15,007,034th Beetle was sold. Volkswagen could now claim the world production record for the most-produced, single make of car in history. By 1973, total production was over 16 million.
n 1964, Volkswagen succeeded in purchasing
Auto Union
, and in 1969,
NSU Motorenwerke AG
(NSU). The former company owned the historic
Audi
brand, which had disappeared after the Second World War.
VW ultimately merged Auto Union and NSU to create the modern day Audi company
.
In the 1980s, Volkswagen's sales in the United States and Canada fell dramatically, despite the success of models like the Golf elsewhere
.
In the late 1990s Volkswagen acquired the three luxury brands Lamborghini (through Audi), Bentley, and Bugatti
.
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