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Volkswagen, a major German automobile manufacturer, was founded by the German government in 1937 to mass-produce a low-priced "people's car." Headquarters are in Wolfsburg.
The company was originally operated by the German Labour Front (Deutsche Arbeitsfront), a Nazi organization; and Ferdinand Porsche was brought in to design
the car. Production was interrupted by World War II, and by the end of the war both the Volkswagen factory and the city of Wolfsburg were in ruins. Allied
attempts to revive the West German auto industry after the war centered on the Volkswagen, and in little more than a decade the company was producing half of
West Germany's motor vehicles.
Exports to most parts of the world were strong, but because of the car's small size, unusual rounded appearance, and historical connections with Nazi Germany, sales in the United States were originally slow. This changed in 1959, when an American advertising agency, Doyle Dane Bernbach, began a landmark advertising campaign, dubbing the car the Beetle because of its shape and pointing to its size as an advantage to the consumer. This campaign was very successful, and for some years following, the Beetle was the leading automobile import sold in the United States.
The Volkswagen hardly changed from its original design, however, and by 1974, with increasing competition from other compact foreign cars, Volkswagen came near bankruptcy. This spurred the company to develop newer, sportier car models, among them were the Rabbit and its successor, the Golf.
Although the company had been founded by the German government, in 1960 the state essentially denationalized it by selling 60 percent of its stock to the public. Volkswagen acquired the Audi auto company in 1965. Volkswagen and its affiliates operate plants throughout most of the world. In addition to cars, the company produces vans and minibuses, automotive parts, and industrial engines. It owns several other auto companies, including Audi in Germany and SEAT (Sociedad Espanola de Automoviles de Turismo) in Spain, and it also makes and markets cars with Fiat of Italy and Skoda of the Czech Republic.
Porsche, Ferdinand
(b. Sept. 3, 1875, Maffersdorf, Austria--d. Jan. 30, 1951, Stuttgart, W. Ger.), Austrian automotive engineer who designed the popular Volkswagen car.
Porsche became general director of the Austro-Daimler Company in 1916 and in 1923 moved to the Daimler Company in Stuttgart. He left in 1931 and formed his own firm to design sports and racing cars. Porsche became deeply involved in Hitler's project for a "people's car" and with his son Ferdinand, known as Ferry, was responsible for the initial design of the Volkswagen in 1934. During World War II the Porsches designed military vehicles, notably the Tiger tank. After the war the elder Porsche was imprisoned by the French for a time. In 1950 the Porsche sports car was introduced.
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