From a funny-looking, underpowered, rear-engined car to one of the biggest manufacturers in the world, the story of Volkswagen – German for ‘people’s car’ – is unlike any other in the car industry.
Take a deep breath… Founded by the Nazis as the pet project of Adolf Hitler. Largely bombed into oblivion during the second world war. Resurrected by a British army major when no other car company wanted it. Exploded into international popularity on the back of the hippie wave. Acquired a range of other car companies to become one of the world’s most powerful industrial organisations. Nearly bought out by Porsche in a family scuffle, responded by acquiring Porsche instead. Embroiled in a global emissions cheating scandal. Now one of the car companies leading the global shift to electric vehicles.
The story of Volkswagen could fill not just a book but a bookshelf. We have a selection of the highlights and lowlights here.
So who or what is Volkswagen?
Volkswagen’s origin story is one of the darkest in automotive industry. As part of the Nazi economic expansion programme in Germany in the 1930s, Adolf Hitler sought to create a locally-built car that every German family could afford. He gave the job of designing such a car to a man who would become his good friend and designer of many German wartime machines, Ferdinand Porsche (who started his own sports car company after the war).
Porsche’s design – some say stolen from a Czech designer – was a car powered by a small air-cooled engine mounted in the back rather than in front, and with a beetle-shaped body designed to compensate for its lack of engine power with smooth aerodynamics.
What would become Volkswagen came into being with a state-owned factory (and accompanying town) that opened in 1937. The first prototype car appeared the following year, but the factory was switched over to making military vehicles – mostly designed by Porsche – for the looming war before production of the little car could even begin.
As well as being responsible for producing a huge amount of war materiel, the factory and its war machines were largely built by slave labour from nearby concentration camps. Allied bombing decimated the facility, and it was ultimately captured by American forces as the war drew to a close.
After the war, the plant was occupied by British forces and Major Ivan Hirst was put in charge of resurrecting production of the passenger car. The patched-up factory was soon producing 1,000 cars a month but the business was generally considered worthless. It was offered for sale to almost every car company in the world, but they all passed. Ford was even offered the company for free but turned it down.
Instead, Volkswagen was developed as a company owned by the new West German government – the Type 1 (universally known as, but never officially called, the Beetle) was its first car, but the Type 2 commercial vehicle became equally iconic in camper form as a symbol of the 1960s.
The Volkswagen Type 1 would go on to become one of the most popular cars in history, remaining in production for more than 60 years and with more than 21 million cars built.
In the second half of the 20th century, Volkswagen built up a reputation for quality that was the envy of its rivals. By the mid 1970s, however, the company was struggling to replace its very old models and sales suffered. Volkswagen’s next generation of cars drew heavily from its first brand acquisitions – two German companies called NSU and Auto Union (which consisted of four further brands, including Audi). These would generally be far more conventional than the quirky originals.
First came the Passat in 1973, followed by the Golf in 1974 and the Polo in 1975. Beetle production continued alongside the new models in Germany until 1978, although it continued in Brazil until 2003.
The Golf, Polo and Passat have formed the core of the VW range ever since. The Golf is now in its eighth generation and is one of the three most popular cars in the world, with more than 35 million sold.
By the end of the 20th century, Volkswagen was a massive global automotive group with four core brands (VW, Audi, SEAT and Skoda). It subsequently added Bentley, Lamborghini, Bugatti and motorcycle maker Ducati to the list, and also created SEAT spin-off Cupra. An American-focused budget brand called Scout is also on the way in the second half of this decade.
During the 2000s, among a series of legal actions by the EU against Volkswagen’s ownership laws in Germany (it’s a long story), sibling company Porsche rather audaciously tried to buy the much larger Volkswagen. However, Porsche’s enormous debt made it vulnerable to a takeover itself and Volkswagen ended up buying a controlling stake of its smaller sibling instead. It was officially described as a merger, but ultimately Volkswagen ended up in control.
Volkswagen was caught in a major scandal that spread around the world in 2015 when US authorities discovered that the company had installed software to deactivate legally required emissions systems in some of its diesel cars. It quickly emerged that millions of Volkswagens, as well as cars from Audi, SEAT, Skoda and Porsche, contained various versions of the software.
Millions of vehicle recalls followed, along with prosecutions and compensation payments in various countries (although not much in the UK, as our laws are weak). Other car companies have subsequently been charged with emissions equipment tampering, but not on the scale of Volkswagen. It was also discovered that the company had, through a third party research company, experimented on monkeys and then humans in diesel fume inhalation tests.
The company showed little public remorse for its actions for a long time, although eventually began a management clear-out and a shift in direction away from diesel.
As part of efforts to rehabilitate its public image, Volkswagen announced a massive investment in electric vehicles with a new line of vehicles carrying the ‘ID’ branding. So far, this has resulted in five models (ID.3, ID.4, ID.5, ID.7 and ID. Buzz) with more to come.
What models does Volkswagen have and what else is coming?
Volkswagen today has one of the most extensive line-ups on the UK market, with more than 20 models to choose from. The core remains three names that have been around since the 1970s, the Polo supermini, the Golf family hatch, and the Passat large car.
The rise of the SUV has certainly been exploited by Volkswagen, with a range of models whose names all start with the letter ‘T’. The first was the Touareg, a large model launched in 2002 and now in its third generation. It has subsequently been joined by (in ascending size order) the T-Cross, Taigo, T-Roc, and Tiguan.
If you prefer MPVs, Volkswagen can offer you the Golf-based Touran, the Multivan, and the electric ID. Buzz – with styling that directly recalls the original Type 2 of the 1950s.
‘ID.’ is the moniker used by Volkswagen across its bespoke EV models. The Golf-sized ID.3 was Volkswagen’s first purpose-built electric car, going on UK sale in 2020. It was followed a year later by a crossover version dubbed the ID.4 and then a coupe-SUV version called the ID.5. The newest EV model is the ID.7, which is effectively an electric Passat.
After all that, we haven’t even mentioned Volkswagen’s van range…
Due next year is a Polo-sized small EV called the ID.2, with a projected starting price in the low £20K region.
Current Volkswagen range on our Expert Rating Index
Where can I try a Volkswagen car?
You’re never too far from a Volkswagen dealership in the UK. With some major rivals such as Ford reducing their outlets in recent years, VW now has one of the most prolific networks on the market, with more than 250 dealerships spread across the UK.
What makes Volkswagen different to the rest?
Even the Dieselgate scandal has failed to seriously dent Volkswagen’s long-held reputation as a mainstream manufacturer of higher quality than rivals such as Ford, Toyota or Vauxhall.
For decades, highly-rated TV advertising emphasised this image, with one of the company’s most memorable tag lines being “If only everything in life was as reliable as a Volkswagen”. Even today, the brand still jealously guards an image of quality.
A Volkswagen fact to impress your friends
What will you get if you order part number 199 398 500 A from your local Volkswagen dealer? The surprising answer is a sausage – Volkswagen makes and sells more of them than it does cars.
Volkswagen began producing food for its workers as soon as its factory first opened in the 1930s, as the location was then very remote. The currywurst sausage has been produced since 1973, and in that time has attracted much critical acclaim – in 2019, seven million were made.
The bratwurst sausage is cut into bite-sized chunks and seasoned with a spicy ketchup sauce (also listed as a VW part), while a vegetarian version of the sausage is also available. In Germany, the sausages are given to customers, and sold in local supermarkets and football stadiums.
Summary
Few car manufacturers have anything like the heft of Volkswagen. The German manufacturer has weathered its controversial beginnings and more recent scandals, and today the VW badge on the front of a car remains an object of some desire.
Additional reporting by Stuart Masson.
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