The Volkswagen Beetle

The first serious overseas challenge to the U.S. automakers came from a small, rather odd-looking, four-cylinder import from Germany called the Volkswagen (VW). It was originally designed in the 1930s as the answer to Adolf Hitler's dream of producing a car for the German masses (Volkswagen translates as people's car). World War II intervened, however, and the car was never built. At war's end American and British firms considered buying Volkswagen, but with the factory destroyed and only one model plan, they declined. The German government picked up the pieces and began production slowly. Over the next few years, the awkward "Bug," as it would affectionately be called later, became a common sight on German roads.

Volkswagen's entry into the United States went largely unnoticed until company executives realized that to break into the American market, VW had to guarantee good service and support for their auto. With a national sales...

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