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At the start of the 1930s, automobiles were considered a luxury item in Germany, the birthplace of Volkswagen. Only a small fraction of the population could afford a car, with an estimated ratio of 1 out of 50 Germans owning one. The lack of accessibility to cars for the average person sparked the concept of a "People's Car" or "Volks Wagen". As this idea gained public traction, prototypes like the "Volksauto" were developed by notable figures such as Ferdinand Porsche, who later became synonymous with the Porsche brand. The Volksauto prototype served as the initial version of what is now commonly known as the Beetle.
Its development aimed to create an affordable car that could accommodate every family, a goal that was successfully achieved. The prototype underwent rigorous testing, including becoming the first vehicle to reach one million miles driven. To meet the objective of providing an affordable family car for all, a factory was established to mass-produce these vehicles. In May 1938, construction began on Volkswagen's first factory, located in what is now Wolfsburg, Germany. However, as the 1940s commenced, production faced significant setbacks due to the outbreak of World War II. Volkswagen shifted its factory focus to manufacturing military vehicles, notably the VW Type 82, commonly referred to as the "Bucket Car" and later the "Thing" in North America. This vehicle became the most produced car by Volkswagen during the war, with over 55,000 units shipped and utilized by Germany.
During the early 1940s, the production of the Bucket Car continued amidst the ongoing war. However, in April 1945, as the British took control of parts of Germany, the production came to a halt as the British took over the production factory. Consequently, the production of Bucket Cars shifted towards the Allied forces. After the war, car production faced significant obstacles as the factory and surrounding cities in Germany were severely damaged.
This led to a pause in car production. Uncertainty loomed over the future of the Beetle project, prompting discussions to determine its viability. Despite this uncertainty, outside investors such as Ford Motor Company decided not to invest in Volkswagen, leaving the company to rebuild on its own. To lead Volkswagen out of the World War II era, Heinrich Nordhoff, a prominent figure from Opel, was chosen.
The Beetle, officially known as the Volkswagen Type I, gradually increased its production starting in late 1949. By the end of 1950, the now-rebuilt Wolfsburg factory had produced 100,000 cars. The popularity of the Beetle continued to soar, with one million Beetles sold worldwide by 1955. Recognizing the growing demand for vans in the late 1940s and early 1950s, Volkswagen embarked on creating a versatile van suitable for both commercial and personal use. This endeavor resulted in the iconic Volkswagen Type II, known by various names such as the Transport van, the Kombi, or simply the "VW Bus" depending on the region.
The Bus quickly gained global popularity, reaching the milestone of one million vans produced in under five years by 1955. The Volkswagen motto at the time, "It is a member of my family," resonated worldwide and reflected the strong bond people felt with the Bus. By the end of the decade, Volkswagen had established plants in Germany, Canada, and Brazil, enabling them to distribute their vehicles worldwide. In a remarkably short period, Volkswagen became a common sight in households across the globe.
During the 1960s, the enthusiasm surrounding the Beetle gradually declined, prompting Volkswagen executives to explore alternative options. One such option was the Volkswagen Karmann Ghia, a sports car that quickly gained a devoted following among car enthusiasts due to its stylish design. In addition to the Karmann Ghia, Volkswagen also introduced the Type III, which came in three variations: the Fastback, Notchback, and Squareback. This compact car was specifically developed to offer a larger and more comfortable option for families compared to the Beetle. The Squareback, in particular, provided ample space for both passengers and luggage. Although it wasn't initially embraced in the United States, the Type III eventually became a favorite among VW enthusiasts who recognized its role in revolutionizing family travel worldwide.
Despite the ongoing popularity of the Beetle in the 1960s, its appeal significantly declined by the mid-1970s. Sales of the Bus and Type III models also failed to meet expectations. In 1971 Volkswagen introduced the 1302 Super Beetle and in 1973 the 1303 Super Beetle. With larger front trunks and improved suspension systems these improved Beetles were a measure to keep the Beetle a viable option for import hungry consumers. By 1975 sales for the Beetle had dropped by almost half, from 791,023 the previous year to only 441,116 and it didn't look like it was going to get any better. Although this may still seem like a huge number of cars compared to today's sales figures, Volkswagen had been selling over 900,000 Beetles annually since 1964 in the US alone. In February 1975 Tony Schmucker took over as chairman of Volkswagen and decided to end production of the Beetle in 1979 and direct more resources to the newer products.
Although production of the air-cooled Beetle in Germany ceased in 1979, it continued in Mexico. The local market referred to the Beetle as the "Vocho", and it was mainly used as a taxi. In 2003 new taxi regulations were introduced permitting only four-door vehicles to be used as taxis, spelling the end of the Mexican Bug. Production of the Mexican-made Vocho ended in 2004 with a special final edition badged the "Ultima Edicion". Even though the Bug was officially dead, air-cooled Volkswagen production of the VW Bus, known as the "Kombi" continued in Brazil. In 2006 Brazilian emission requirements finally retired this last remaining Volkswagen air-cooled engine. Volkswagen embarked on a mission to create a new generation of vehicles. This endeavor led to the introduction of iconic cars that are still recognized by every driver today, including the VW Passat and Golf.