Historiography: 75 Years of Volkswagen in America
No longer do they sell air-cooled rear-engine vehicles. They have diversified into battery-electric models, alongside performance icons and SUVs.
A few decades ago, Volkswagen of America put out a commercial celebrating its first auto show appearance back in 1949. The commercial featured automobile brands that made a splash that year, but they would go away soon sometime afterwards.
That idea is simple: That Type 1 Sedan – the “Beetle” – would outlast the likes of Hudson, Studebaker, DeSoto, Packard, and so forth. A small, air-cooled, rear-engine two-door car that was designed in the late 1930s would sell in the millions worldwide and would continue to be in production for decades to come.
Seventy-five years later, Volkswagen of America is still in business selling its wares as usual. No longer do they sell air-cooled rear-engine vehicles. They have diversified into battery-electric models, alongside performance icons and SUVs.
Volkswagen of America’s humble beginnings were not without some pushback. After all, this country was four years removed from the end of World War II.
I make it clear that we’re not talking about Volkswagen as a whole. The initial vehicles came from Wolfsburg, within the British administered part of a divided Germany. By the time Volkswagen was ready to sell across the Atlantic, the Federal Republic of Germany was established in Bonn and the Cold War was firmly steeped in the divided country.
It is hard not to acknowledge its pre-WWII history. The idea of Volkswagen was a goose-step move from the Nazi regime in Berlin. Dr. Ferdinand Porsche came up with the engineering treatise that enabled a small air-cooled engine to be mounted on the back of the car as an affordable way to propel this “people’s car.” Little did we know that I would end up being converted to military use during the war…
After the war was over, the Volkswagen plant in Wolfsburg was rebuilt and production of the Type 1 was under way. The car itself was seen as a necessity because of its affordability, ease of maintenance and service. It was the one automobile that may have saved West Germany from oblivion.

To ensure the future of the Wolfsburg facility, exports were necessary for the company’s survival. Yet, the Type 1 was a hard sell in the former Allied countries. They were being sold in front of those who still had a bad taste for Germany because of what the Nazis did to millions of people during World War II.
In 1949, only two Type 1 models were sold in the USA. The British and French automakers sold several thousand of their wares against the mighty American brands. Being a “foreign” automotive entity was indeed a struggle when you’re competing against larger machinery powered by more cylinders than the Europeans had to offer.
Perhaps one way to sell the Type 1 on American shores was to rebrand it to something more palatable for consumers of the Greatest Generation. The Type 1 was sold as the “Victory Wagon” – a different way to translate Volkswagen. “People’s Car” sounded very socialist – even communist – to post-WWII former-Allied society.
Volkswagen gained some momentum in the 1950s. It was enough to establish an official importer – Volkswagen of America. Headquartered in New Jersey, Volkswagen of America was given plenty of tools to sell the Type 1 Beetle and the Type 2 van/bus with some free reign. That meant bringing in an advertising firm – Doyle Dane Bernbach – to create a marketing strategy that utilized humor to help sell Volkswagen models to global audiences.

To meet Wolfsburg’s limited advertising budget, DDB create these iconic ads in black-and-white. Not just for cost savings, but for maximum affect with added humor. Those ads helped sell millions of Beetles wherever they are sold. Plus, the Type 2 and subsequent models built on the same air-cooled rear engine platform.
By the late 1960s, Volkswagen was the leading “foreign” car brand in the USA. They had four distinct lines of models – with the added Type 3 Squareback/Fastback/Sedan and the Karmann-Ghia sports coupe. The latter was formed from the Type 1 chassis with a body by the Italian design house built by the German coachbuilder. It was the one car you never saw coming from a humble automaker.
By the end of the 1960s, Volkswagen was the leading “foreign” brand in the USA automotive market. However, their leadership would be challenged in the 1970s. Not just because of the expansion of imports from Japan. It is a question of sustainability for the brand on these shoes – and worldwide.
One had to wonder whether air-cooled rear-engine common platform would keep Volkswagen in business in key parts of the globe. In particular, the USA. Yet, Volkswagen have been working on a new generation of vehicles based on a different format altogether.

Through the absorption of the companies formerly known as Auto Union, Volkswagen saw a future in front-drive, water-cooled vehicles. The Audi brand was one possibility for a future lineup of Volkswagen models that would be sold as mainstream vehicles.
Coincidentally, the OPEC Oil Crisis took place. While this affected the domestic automakers in the USA, it also spurred Volkswagen into action by accelerating its product plan towards the new vehicle format to supplant the decades-old air-cooled models. That, along with new safety and emissions standards imposed by the Federal government.
By 1974, Volkswagen sold its first of this new wave of vehicles in the Passat – marketed as the Dasher in this country. The Passat/Dasher took on a smaller Audi-based platform with a north-south engine format driving the font wheels.
This was followed up by the Mk I Golf – sold as the Rabbit stateside. If one vehicle would change the direction of Volkswagen of America, the Rabbit was it. It would be the first vehicle to be built in the USA at the Westmoreland, Pennsylvania plant near Pittsburgh. The Rabbit would also become a smash hit in the USA, as well as worldwide.

With the arrival of the Dasher and Rabbit, we had to say “farewell” to the Beetle and other rear-engine models. The way forward was riding on the Golf/Rabbit’s basic platform – a transverse-mounted engine driving the front wheels. The Karmann Ghia would give way to the Scirocco. Eventually, all Type 3 models found a replacement in the Jetta.
The only rear-engine vehicle left in the lineup was the Type 2. That would be replaced by a new body called the Vanagon in the states. While it looked contemporary with the Rabbit, Jetta, Scirocco, and, now Quantum (Mk 2 Passat), it still had an air-cooled engine, which will give way to a water-cooled version for the 1984 model year.
Volkswagen of America would reach a new peak in 1985 with the arrival of the Golf Mk 2. By this time, the GTI was introduced in the USA and became a sensation on its own. That model alone won Motor Trend’sCar of the Year.
With the Mk 2 Golf and Jetta, a core model lineup was established at Volkswagen of America to challenge the Japanese and domestic newcomers in this size class. Since the “foreign” car market had changed with the proliferation of Japanese brands and captive imports from that country, Volkswagen of America had to find a way to compete in the 1980s and 1990s by selling to a customer base that wants only European branded vehicles.

These were years removed from the humorous advertising of the 1960s. Years away from selling vehicles that stood the test of time, while offering something completely different than the rest of the market. There were moments when we thought that Volkswagen had lost its way and seemed to be entrenched to only sell to consumers that will never buy a vehicle from Asia.
The closure of the Westmoreland plant in 1988 saw a huge chunk of production shift to the Volkswagen plant in Puebla, Mexico. They also experimented by introducing a low-cost model built in Brazil – the Fox – to compete with the Hyundai Excel and Yugo GV.
Volkswagen of America was still in business through the 1990s. Sales were down overall through the middle of the decade. The lineup was not as exciting as it once was. There was still a Golf GTI, but the Corrado’s demise by the middle of the decade did not help matters.
However, a design craze began to take hold worldwide. This manifested in a concept that was introduced at the 1994 North American International al Auto Show – the Concept One. The platform came from the Mk 3 Golf, yet the design looked very familiar. It looked the old Type 1 Beetle.

In 1997, the production version of the New Beetle arrived at Volkswagen of America showrooms. It sparked a sales uptick and a renewed interest in the brand. It was not without its own controversy. It’s not the Beetle previous generations had when they were younger. It’s not attracting a younger demographic as the marketing folks hoped for. Heck, it’s a Golf with a Beetle-like body on it and weird interior dimensions.
Still, the New Beetle regained the attention of the automotive consumer. It also gave Volkswagen the license to do more with its USA lineup. The Golf R32 was one such welcomed addition. That would be followed by the Touareg – the first SUV sold by Volkswagen of America.
Sometimes, a decision might work in a company’s favor. Case in point: The Phaeton sedan. Granted, it shared the same platform as the Audi A8 and a few Bentleys. However, the price Volkswagen was asking for a flagship sedan wearing its iconic badge was way out of the budgets of its core customers. It was a charming idea, but only a few that were able to afford it were charmed by the Phaeton.
We were also charmed by several attempts to recapture the marketing buzz of the past. In German, “farfegnugen” translates into “driving pleasure.” Certainly, the core of the Volkswagen lineup in the 1990s had that feeling behind the wheel. But, was it enough to engage new customers to the brand?

Even bringing out quirky ads, such as a child dressed up like Darth Vader to send “the force” into everything – including a 2012 Passat. Or, a couple of young men bringing home a free chair to the tune of Trio’s “Da Da Da” in the back of their Mk 3 Golf. The through line for Volkswagen has always been to provoke humor through unconventional ways to market their lineup.
In recent years, Volkswagen of America was able to shift its lineup to try new models and segments with mixed results. Today’s three SUV lineup – Taos, Tiguan, and Atlas – meet the needs of today’s customers looking for a competitive vehicle with Volkswagen’s engineering and driving signature. While this will be the final year of the Arteon, Volkswagen will continue to offer the Golf GTI, R, Jetta, and GLI for those looking something exciting.
However, the future of Volkswagen will be electrified – as dictated by Wolfsburg. The trio of battery-electric vehicles are part of that strategy in the USA. The ID.4 have found a few homes and the ID.Buzz minivan has sparked plenty of interest. The ID.7 is also an attractive proposition once it reaches showrooms across America.
Yet, there are some who have questioned the push by Volkswagen towards battery-electric vehicles. Not when the market is cooling due to a laundry list of questions and concerns about EV ownership. They once had a hybrid gasoline-electric Jetta several years back, but it was not well received. That, along with the e-Golf.

You can’t fault Volkswagen of America for trying. That is all they have done since the Type 1’s arrival on American shores 75 years ago. The gamble of selling an air-cooled rear engine two-door car with a pre-WWII design was quite the gamble when the main American automakers were rolling out their postwar designs.
That gamble paid off. Volkswagen of America is still in business today.
Cover photo by Randy Stern