Today, Volkswagen is the largest automaker in Europe. However, it has not always been this way...

     Literally, the word "volkswagen" means "people's car." In Germany, the idea of a people's car wasn't exactly a new one. Before the 1930's, there had been many efforts to create simple cars that everyone could afford, but none met with profound success. Almost all cars before 1930, even if they were designed to be simple enough for the average person, ended up costing more than the average worker's yearly wage.

    Meanwhile, the year is 1930, and Ferdinand Porsche had just set up an automotive design company, which became known as the Porsche Büro. The company patented a sophisticated independent front suspension system, which consisted of transversely mounted torsion bars connected to two trailing arms on each side. At the time, this was lighter than most other common types of suspension. In 1931, a German motorcycle company, Zündapp, asked Porsche if he could design a suitable car for them. Porsche came up with a streamlined 2 door sedan, which had lines similar to the Beetle. It was designated the Type 12. Zündapp wanted to put in a 1.2 liter radial engine from one of their motorcycles...this was the end of the line for this design, as it didn't make it any further.
    Porsche then designed a car for NSU in 1933 that was known as the Type 32. This car looked even more similar to the upcoming KdF Wagen than the Type 12 did. This car looked similar to the Tatra V570, and shared many mechanical similarities. After World War II, the Volkswagen company paid Tatra for compensation, since Tatra believed its technology and design was pirated in development of the KdF Wagen. Eventaully, NSU dropped the Type 32 project.

     Volkswagen was originally founded in 1937 by the Nazi trade union, the German Labour Front (Deutsche Arbeitsfront). In the early 1930s German auto industry was still largely composed of luxury models, and the average German rarely could afford anything more than a motorcycle. As a result only one German out of 50 owned a car. Seeking a potential new market, some car makers began independent "peoples' car" projects – Mercedes' 170H, Adler's AutoBahn, Steyr 55, Hanomag 1,3L, among others.

The trend was not new, as Béla Barényi is credited with having conceived the basic design in the middle 1920s. Josef Ganz developed the Standard Superior (going as far as advertising it as the "German Volkswagen") . Also, in Czechoslovakia, the Hans Ledwinka's penned Tatra T77, a very popular car amongst the German elite, was becoming smaller and more affordable at each revision. In 1933, with many of the above projects still in development or early stages of production, Adolf Hitler got involved, demanding the production of a basic vehicle capable of transporting two adults and three children at 100 km/h (62 mph). The "People's Car" would be available to citizens of the Third Reich through a savings scheme at 990 Reichsmark (US$ 396 in 1930s dollars)--about the price of a small motorcycle (an average income being around 32RM a week).

                                         Type 12 (Zündapp), Museum of Industrial Culture, Nurnberg

Despite heavy lobbying in favour of one of the existing projects, it soon became apparent that private industry could not turn out a car for only 990RM. Thus, Hitler chose to sponsor an all-new, state-owned factory. The intention was that ordinary Germans would buy the car by means of a savings scheme ("Fünf Mark die Woche musst du sparen, willst du im eigenen Wagen fahren" – "Five marks a week you must put aside, if you want your own car to ride"), which around 336,000 people eventually paid into. Prototypes of the car called the "KdF-Wagen" (German: Kraft durch Freude – "strength through joy"), appeared from 1936 onwards (the first cars had been produced inStuttgart). The car already had its distinctive round shape and air-cooled, flat-four, rear-mounted engine. The VW car was just one of many KdF programs which included things such as tours and outings. The prefix Volks— ("People's") was not just applied to cars, but also to other products in Germany; the "Volksempfänger" radio receiver for instance. On 28 May 1937, the Gesellschaft zur Vorbereitung des Deutschen Volkswagens mbH (sometimes abbreviated to Gezuvor) was established by the Deutsche Arbeitsfront. It was later renamed "Volkswagenwerk GmbH" on 16 September 1938.