The history of German cars that started "for the people."

Jul,09

business Germany

TEXT : Wadd Bidstrup

Volkswagen, the German car manufacturer known for its unique lineup including the "Beetle" and "Golf," traces its beginnings back to before World War II. In 1937, a state-owned enterprise was established under the banner of developing a car for the people, and the development of vehicles for the general public began. The Beetle, released after the war, was well-received for its unprecedented specs and design, and quickly spread not only domestically but also worldwide. Let's trace the history of this German car manufacturer that started "for the people."

Automobile development started as a national policy.

Before World War II, cars in Germany were merely status symbols for the wealthy. While mass production was advancing in the United States and France, Germany was producing on a small scale, and cars were far removed from the general public. Against this social backdrop, Germany established the state-owned company "Gesellschaft zur Vorbereitung des Deutschen Volkswagens mbH" to promote the widespread use The person of automobiles in society.
The person in charge of the design was Ferdinand Porsche, who would later found Porsche AG. After developing various test cars, Porsche created the "Beetle," which boasted remarkable performance. It could accommodate three adults and two children at a speed of 100 kilometers per hour, combining high power with low fuel consumption. It achieved both high performance and low cost. After the end of the war, mass production began without delay, and the Beetle made its debut on the market.

Germany's proud people's car expands to the world.

It goes without saying that the Beetle, with its excellent performance, economy, and low rate of malfunction, garnered strong support from the public. It was exported not only within Germany but also to countries worldwide, playing a significant role in Germany's post-war recovery by earning foreign currency. In response to this market reaction, Volkswagen expanded its lineup, introducing a variety of models from the 1950s to the late 1960s, including the VW Bus, sports coupes, sedans, and four-door wagons. The Beetle, which paved the way The Beetle, whi for global expansion, surpassed one million units in 1955, reached five million units in 1961, and ten million units in 1967, cementing its popularity. In 1988, it achieved the astonishing figure of twenty million units. In Japan, Yanase & Co., Ltd. began selling the Beetle in 1953. In 1983, the sales were handed over to the newly established Volkswagen Japan (now Volkswagen Group Japan). Today, the company operates at over 200 locations nationwide.

A new people's car to the market.

In the 1970s, Volkswagen released the new model "Golf," marking the birth of a new "people's car" following the Beetle. The drive system was switched to front-engine, front-drive, and the exterior was completely revamped with a sharp design by industrial design master Giorgetto Giugiaro. The stylish Golf gained market popularity, surpassing one million units in production within three years of its launch, and it became the centerpiece of the lineup, replacing the Beetle. The Golf also gained popularity in Japan, winning the "Import Car of the Year" award in 2004 and 2009, and in 2013, it became the first imported car to win the "Japan Car of the Year" award.
In 2002, global sales exceeded 21 million units, breaking the Beetle's record and solidifying its position as the new people's car.

Electrification and beyond.

In 2020, Volkswagen turned towards electrification by launching its next-generation EV models in the European market. In 2023, it announced the construction of an EV battery production plant in Canada and established a research and development facility in Michigan, USA. The company also invested $700 million in the emerging Chinese EV manufacturer XPeng Motors. Volkswagen is steadily building a network with domestic and international companies, including collaborating with a major domestic printing company on the development of new battery cells. Moving forward, the company plans to invest approximately 270 billion yen in Brazil by 2028 to further its decarbonization efforts. "One of the Group's strengths is its brand power," said CEO Oliver Blume in a message to shareholders. The attractive and unique model lineup is part of Volkswagen's inherited DNA. The company’s sales revenue, which had been on a decline with 2.5 trillion yen in 2019 and 2.2 trillion yen in 2020, gradually recovered, surpassing 3.2 trillion yen in 2023. Volkswagen will continue to focus on electrification while carrying on its DNA of being "the people's car," striving to create vehicles that are easy for everyone to use.