Volkswagen: History of The People’s Car Part 1
May 8, 2006 – 9:00 am by Dan Volkens
Filed under Featured, Volkswagen History
The idea of “The People’s Car” (Volkswagen translated literally) wasn’t a new one at the turn of the 20th century. Before the 1930’s, many of the early automobile manufacturers strived to develop a car that was affordable to the masses. But none found success. Designed as simple as the manufacturers could make them, the cars still ended up costing more than a year’s wages for the average worker.
That is until 1930 when Ferdinand Porsche created the automotive design company known as the Porsche Büro. Porsche and his newly founded company were pivotal in revolutionary design and engineering developments in the automotive industry. In 1931 Ferdinand began his pet project, the Type 12, which was the predecessor to the car that would become known as the Beetle or “Käfer”. The Type 12 was a streamlined 2 door sedan designed for a German motorcycle company named Zündapp. However indecision over what engine to place inside of it ended its life prematurely. Zündapp wanted to put one of their 1.2l motorcycle engines inside of the Type 12, but it seems Porsche wasn’t having that and development on the Type 12 ended there.
In 1933, Adolf Hitler met with Ferdinand Porsche to discuss their mutual interest in an affordable car for the masses, and thus began what some call darker times in Volkswagen’s history. It was through this partnership that Volkswagen found itself at the service of the Nazi war machine in the coming years. More on that later in our series.
Hitler wanted a car that would provide better fuel economy (33mpg), could carry up to 5 passengers, be able to reach speeds in excess of 60mph, yet cost only 1,000 Reich Marks. This first model born of Hitler’s and Porsche’s partnership was designated the Type 60, but soon after was changed to the V1, or experimental 1. Hitler also proposed a convertible version, designated V2, but impossibly tight production deadlines prevented Porsche from being able to design and build the cars in time. By 1935, the first cars were built, and soon after the V1 design was updated. Named the VW3, this new design looked very similar to the KdF Wagen (Kraft durch Freude, or strength through joy) which would come along a few years later.
The VW3 carried many new engineering developments to the forefront, including metal floors, swing axle rear transmissions, Porsche’s famous front independent suspension, and backbone floorpans. Though many different engine types were tested in the VW3, Hitler and Porsche settled on an aircooled flat four cylinder four stroke engine.
This engine choice proved to be a good one since it turned out to be cheaper and more reliable than others that were tested. Putting out 22.5 hp, this little four cylinder “boxer” engine was almost identical to the one that is found in the iconic Volkswagen Beetle of today. (Not the New Beetle, of course, but the classic Beetle.)
Speaking of icons, Erwin Komenda, Porsche’s chief designer, created the distinctive round shape that is so familiar today. It was one of the first vehicles to be designed with the aid of a wind tunnel.
Hitler conceived a savings scheme for purchasing the car as well: “Fünf Mark die Woche mußt Du sparen, willst Du im eigenen Wagen fahren” — “Save five Marks a week, if you desire to drive your own car”. Around 336,000 people bought into this scheme, and Volkswagen did honor the savings agreements, but only after World War II. Ford conducted a similar coupon savings system but did not follow through on its agreement.
In 1938, construction began on Volkswagen’s first factory in the town of KdF-Staft, now known as Wolfsburg. Only a few cars were produced before war started in 1939, and none of those were actually delivered to those who had completed their savings stamp books, save one Type 3 Cabriolet given to Hitler for his 50th birthday.
With war on the horizon, production turned towards two military vehicles: the Type 81 Kübelwagen utility vehicle and the amphibious Schwimmwagen. And with the dawn of world war, we wrap up the first part in our series on the History of the People’s Car. Stay tuned for Part 2!













Hitler didn’t meet with Porsche until 1934. On January 17 of that year, Porsche sent a lengthy memorandum (called an “Expose”) to the German Government’s Transport Ministry, spelling out the specifications of a small car ideal for sale to the masses. Hitler read it, and in May of that year, he summoned Porsche to a meeting in the Kaiserhof Hotel in Berlin to discuss his memorandum and the possibility of building such a car for Germany. The details were worked out in a series of meetings, and an agreement was reached. On June 22, 1934, a contract was signed by Porsche in which he agreed to develop a small car for the average German worker under the supervision of the German Automobile Industry Association – RDA, or Reichsverband der deutschen Automobilindustrie. The initial contract gave Porsche only ten months in which to design and test a car that would sell for 900 marks. Porsche was to build three prototypes for testing. Working out of the garage at Porsche’s home on Stuttgart’s Killesberg, Porsche and his staff began designing and assembling the cars.
This design and testing work was to last four years before Porsche arrived at his final design, which looks a lot like the VW Beetles sold during the 1950’s. The RDA hoped that the ten-month limit on Porsche’s original contract would kill the project (they didn’t want the competition this car would bring), but Hitler insisted they extend the contract to give Porsche more time. Also, the cars you describe Porsche as building in 1935 (Type60/V1, V2, VW3) were only prototypes – no civilian VWs rolled off the assembly line in Wolfsburg until after the end of World War II (Most of the vehicles produced there from 1940 to 1945 were the Kubelwagens and Schwimmvagens).
I highly recommend the following books on the VW’s history:
“Small Wonder: The Amazing Story of the Volkswagen Beetle” by Walter Henry Nelson, Robert Bentley Books, Cambridge, MA, $17.95. ISBN 0-8376-0147-9
“Birth of the Beetle” by Chris Barber, Haynes Publishing, UK, $39.95. ISBN 1-85960-959-7
These books are where I got the above information, and I consider them, especially “Small Wonder,” to be the definitive tomes on VW’s development and history.
Bill, thanks for the more detailed and correct info! I will look into those books you recommended. This first part of this post is a compilation of research I had been doing online.
I love Volkswagen history, as well as German WWII history.
It enthralls my brain!
I’m glad you wrote this because I’m always looking for more info about what the Germans were doing in WWII times.
Godspeed.
- Tyler N.
Age:16
Maryland
Right on Tyler. I completely dropped the ball on finishing this series. I gotta get around to it. :D
I am looking for a little promo film about the VW. It showed it packed into a small crate.? Does any one know how I can access this. What is the name of it?
Hey Vaustin, haven’t heard about that myself, but it sounds very cool. Hopefully someone will post up about it!