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Germany's Volkswagen crisis: an ode to nostalgia

November 10, 2024

Germany's car manufacturer and long-time economic powerhouse Volkswagen has shaped the lives and memories of generations of Germans. It's current crisis gives pause to reflect on its importance in Germany's history.

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A black-and-white historical image of a VW Beetle in a showroom, surrounded by a massive crowd of people, with a sign reading "1 million" hanging above it
The VW Beetle was Volkswagen's first great success. But will VW manage to maintain its popularity in the age of electric vehicles?Image: Herold/dpa/picture-alliance

Is Volkswagen (VW) truly just a normal German automobile manufacturer? And are VWs really just ordinary cars? Generations of German would agree, the answer is a resounding "no."

For generations, the brand Volkswagen has been a part of Germans' collective DNA. From Beetles and buses to Caddys and Passats, most people born in Germany before the 1990s still associate a lot of memories and emotions with VW cars.

Oma's VW Golf

It seems like practically everybody has driven a VW before, no matter if they were hippies or grandmothers, speedsters or traffic police, firefighters or families.

How lovely it was to take your Beetle across the Alps, before they built the Gotthard motorway tunnel! Or to pile into your VW Bus with your friends and drive off for a vacation on Corsica! How easy it was to spontaneously move a small home with your Caddy that could easily pack in a bed, table or even a wardrobe.

Made in Germany

This nostalgic glimpse into our collective German past will likely remain unchanged, especially given the current crisis. It's a part of Germany's collective memory.

The success story of VW's most popular cars was not only the success story of the Volkswagen Group as a whole — it also highlighted Germany's economic resurgence after World War II. It became emblematic for Germany's post-war reconstruction.

"Volkswagen is more than just a car brand. It is the underlying feeling of German security," Jan Grossarth wrote for the German daily newspaper Die Welt. "VW stands for innate trust in Germany's business model."

Volkswagen in crisis: Why is the German carmaker struggling?

Volkwagen: the 'people's car'

VW's success story began with the Beetle, which Nazi dictator Adolf Hitler personally commissioned in 1935. It wasn't until the end of World War II that the car branded for "Kraft durch Freude" (strength through joy) was officially renamed as Volkswagen — literally, the people's car. It quickly became a bestseller, and despite its Nazi origins swiftly rose to enjoy global cult status.

The first postwar model rolled off the assembly line in December 1945. Ten years later, VW had already sold over a million Beetles. But at the time, they weren't commonly referred to as such. The term didn't establish itself colloquially until the 1960s, when Volkswagen started offering other car models.

Regardless of whether users called it Käfer, Beetle, or Fusca, the venerable vehicle with an air-cooled boxer engine in the rear and a rounded trunk hood in the front took the global market by storm, especially in the US, Brazil, Mexico and China.

Worldwide, nearly 22 million Beetles were produced and sold. The last one rolled out of the factory on July 30, 2003, in Mexico.

In the late 1990s, Volkswagen tried to reproduce the original Beetle's success when it issued the New Beetle. In 2010, this was replaced by another follow-up model before the line was soon thereafter discontinued due to flagging sales.

In recent years, China has been sporting a four-door electric vehicle that looks like a close copy of the VW Beetle. While most in Germany would say the so-called Ora Ballet Cat by Chinese automobile manufacturer Great Wall Motor (GWM) is a clear case of plagiarism, China calls it an homage to the original Beetle.

The VW Bus: Germany's pack mule

But the VW Beetle wasn't the only car whose sales would "run and run and run,” as a famous 1968 commercial said of the car.

As car tester Christoph Bauer put it, "the most sympathetic face of automotive history," is the VW Bus: "pack mule, rolling home, fire truck, taxi, ambulance, lifestyle van — there's nothing it can't do."

Technically, the small transporter T1 was based on the Beetle. It was originally designed for tradespersons who needed to be able to bring along their tools and materials. Between 1950 and 1967, 1.8 million models were sold in Germany alone.

"What made the T1 so successful was its sense of freedom. You could just get into your car and drive wherever you wanted," Bauer said.

The same essentially goes for all six following models, up to the most recent T7 Multivan. To this day, holiday getaways with a VW camper van — affectionally referred to as "Bullis" in Germany — stir up fond memories for most.

The VW Golf: 'harmony you can feel'

The next step in the long streak of success for VW — and for German manufacturing — came in 1974, when the company released the first Golf model Mk1. By now in its eighth edition, the Golf is one of the world's best-selling car models, with over 35 million units sold so far.

In Germany, the car was so successful that entire generations grew up with it. German author Florian Illies gave them a name with his 2000 book titled "Generation Golf" — basically, Germany's Generation X.

In a video, Golf designer Giogetto Giugiaro explained the secret to this car's success: "The sloping front hood, the drawn-down rear and the low waistline are the notes I used to compose this song," he says. "Together, they create a harmony that one cannot grasp with your head or your heart. You just feel it."

The Golf was another big hit on the global market: In Brazil, South Africa, China and the US, the Golf model was manufactured and adapted to country-specific needs. Jan Linnenkamp, head of the Original Golf 1 interest group said the Golf is a "classless car."

"The chief physician drives his Golf to the clinic, the letter carrier uses it to deliver the mail, and a secretary in the industrial sector drives a Golf to work," he explained.

And now, has Volkswagen, of all brands, so intricately interwoven with Germany's post-World War II "economic miracle" really fallen upon hard times? Has the company fallen victim to its success? And will Germany stand by the car manufacturer? After all, the state of Lowery Saxony has a 20% voting stake.

It remains to be seen if and how the company might make it out of this current crisis. But whatever happens, it's clear that VW's future will not only be a matter of nostalgia, but also a political issue charged with emotions. 

This article was originally published in German.