In the early 1930’s, a car was a luxury. Most Germans were not able to afford any other vehicle except motorcycle. Only one out of 50 Germans owned a car. Considering that hindrance, many people started working on the “people’s car” project. In 1937, under the control of Adolf Hitler of the National Socialist (Nazi) Organization, the government of Germany formed a new state owned automobile company called as Gesellschaft zur Vorbereitung des Deutschen Volkswagens mbH. Although, a year later, it was named Volkswagen “people’s car” simply. Volkswagen was established by the German Labor Front (Deutsche Arbeitsfront) in 1937. Headquarters were in Wolfsburg, Germany.
The Austrian engineer Ferdinand Porsche was hired by German Labour Front in 1934 and he was responsible for the original design of the car. In 1939, World War II, Volkswagen’s involvement in the military made its factory an earmark for the integrated bombers and by the end of the war, the factory was in ruins. The mass production of Volkswagen began in 1946 after it was rebuilt under British supervision. In 1950’s the production of the Volkswagen expanded speedily. Initially, the sales of Volkswagen was slower in the United States because of its prior connection with Nazi as well as its unusual rounded shape and small size. However, in 1959, the landmark campaign launched by Doyle Dane Bernbach, dubbing the car ‘beetle’ and revolving its small size as a distinctive feature to the customers. As a result, it became the top-selling company in US in the next several years. Golf initially called Rabit, introduced in 1974 in the US, was an instant success.
The company also started to produce vans and commercial vehicles in addition to passenger cars. Several other automotive companies are also owned by Volkswagen including Bentley in UK, Bugatti in France, Audi and Porsche in Germany, SEAT in Spain, Skoda in Czech Republic and Lamborghini in Italy.