Volkswagen – from Hitler’s car for the masses to one of the world’s largest automakers.

The Nazi goal was that every German family could afford to buy a car if they saved a few marks a week. And so the Volkswagen car company was born.

The Volkswagen car manufacturer is among the best-known and largest automobile producers in the world. However, its history is closely tied to the period of National Socialist Germany. The following text outlines the circumstances of the company’s founding and explains its role in the Nazi economy.

1. The Beginnings of the “People’s Car” Project

Adolf Hitler and the Idea of an Affordable Automobile

When Adolf Hitler became Chancellor of Germany in 1933, one of his goals was the rapid motorization of the country. In his vision, the manufactured “people’s car” (in German literally “Volkswagen”) was to cost no more than 1,000 Reichsmarks and become an affordable means of transport for broad swaths of the population. This idea corresponded to the propagandaPropaganda is a form of communication aimed at influencing p... More slogan at the time: “one family – one car.”

Collaboration with Ferdinand Porsche

To realize the project, Hitler approached Ferdinand Porsche, who was already a renowned automotive engineer. Porsche designed a prototype of a small car that could be mass-produced and meet basic requirements: reliability, easy maintenance, low fuel consumption, and relatively low manufacturing costs. The result was a design that would later become famous as the Volkswagen Type 1 (known after the warWar (General Definition) War is a state of armed conflict be... More as the Beetle).

Founding of Gesellschaft zur Vorbereitung des Deutschen Volkswagens mbH

In May 1937, by order of the National Socialist government, a company called Gesellschaft zur Vorbereitung des Deutschen Volkswagens mbH (“Society for the Preparation of the German People’s Car”) was established. It would eventually develop into the car manufacturer we now know as Volkswagen.

2. Construction of the Factory and the Role of the Nazi KdF Organization

The “KdF-Stadt,” the Future Wolfsburg

The Nazi regime assigned extraordinary importance to the future factory and its workforce. An area near Fallersleben in Lower Saxony was chosen for the plant’s construction, and a new town soon sprang up there for the employees. It was originally called **Stadt des KdF-Wagens bei Fallersleben** (“The City of the KdF Car near Fallersleben”) and was renamed Wolfsburg after the warWar (General Definition) War is a state of armed conflict be... More. The acronym KdF stands for **Kraft durch Freude** (“Strength through Joy”), which was one of the main mass organizations in Nazi Germany and part of the German Labour Front (**Deutsche Arbeitsfront**, DAF).

PropagandaPropaganda is a form of communication aimed at influencing p... More Campaign and Savings Plans

The Nazi regime promoted the production of the people’s car under the motto “Kraft durch Freude.” Citizens were offered savings plans: by making regular monthly payments, they were supposed to become future owners of the new KdF-Wagen. However, with the onset of warWar (General Definition) War is a state of armed conflict be... More, large-scale mass production of civilian cars never materialized as planned, and most citizens who had saved for the car never received one.

3. World War II and Involvement in the Nazi Economy

Transition to Military Production

After the outbreak of World WarWar (General Definition) War is a state of armed conflict be... More II in 1939, the German economy rapidly pivoted to wartime production. Instead of civilian vehicles, the Volkswagen plant began producing military versions of the original Beetle—primarily the off-road **Kübelwagen** (Type 82) and the amphibious **Schwimmwagen** (Type 166). These vehicles were an important part of motorizing the German army (Wehrmacht) on various fronts.

Forced and Slave Labor

Production at the Volkswagen factory was closely linked to the Nazi warWar (General Definition) War is a state of armed conflict be... More effort. The plant made use of forced labor (the so-called **Zwangsarbeit**) by people from occupied territories and prisoners of warWar (General Definition) War is a state of armed conflict be... More. These workers were often held in inhumane conditions and forced to work for little or no pay. It is estimated that tens of thousands of people from across Europe were exploited in this manner. During the warWar (General Definition) War is a state of armed conflict be... More, there was also a satellite concentration camp on the automaker’s premises, which operated under the nearby Neuengamme concentration camp.

4. The Postwar Period and Volkswagen’s Transformation

British Administration and Production Revival

After World WarWar (General Definition) War is a state of armed conflict be... More II ended in 1945, the factory—located in the British occupation zone—came under the administration of British military authorities. They recognized the plant’s potential to provide mobility and help rebuild the German economy. Production focused on the Type 1 (the Beetle), which entered series production under the name Volkswagen.

For a short time, the British authorities considered selling the factory to a foreign automaker, but none of the major companies (e.g., Ford) showed serious interest in the war-damaged facility. As a result, the plant remained under German management. This laid the groundwork for Volkswagen’s future success, as the Beetle eventually became one of the best-selling cars in the world.

Transition to Civilian Production and New Leadership

Under British supervision, the Nazi-era management was gradually replaced, and the factory shifted to civilian operations. Ferdinand Porsche was briefly interned by the French after the warWar (General Definition) War is a state of armed conflict be... More, but design and engineering activities were gradually revived in postwar Germany. Volkswagen’s leadership managed to revitalize the company both economically and socially, notably through export of vehicles.

5. Reflection and Compensation

Postwar Reconciliation and Historical Responsibility

After the warWar (General Definition) War is a state of armed conflict be... More, the Volkswagen Group faced numerous lawsuits concerning forced labor and the exploitation of workers. The company apologized for warWar (General Definition) War is a state of armed conflict be... More crimes committed at the factory and participated in compensation programs for survivors. The Group also funded projects aimed at historical research and commemorating the fates of forced labor victims.

Memorial Sites

In the vicinity of the former factory and in other parts of Germany, memorial sites have been established over time to ensure that the tragic events associated with wartime production and slave labor are not forgotten. Today, Volkswagen openly acknowledges the darker chapters of its past and makes documentation from the era of the Nazi dictatorship available in its corporate museum and archives.

6. Conclusion

Volkswagen originated as part of an ambitious plan by Nazi Germany to motorize the population. However, the vision of mass-producing an affordable car was never fully realized in its intended form due to the outbreak of World WarWar (General Definition) War is a state of armed conflict be... More II. During the warWar (General Definition) War is a state of armed conflict be... More, the factory produced military vehicles for the Wehrmacht and exploited forced labor by civilians and prisoners of warWar (General Definition) War is a state of armed conflict be... More.

After World WarWar (General Definition) War is a state of armed conflict be... More II, the plant came under British control and was gradually transformed into a modern automaker. The Volkswagen Beetle became an icon of postwar mobility and the foundation of the Group’s global success. Nevertheless, the brand’s history is inseparably linked to the Nazi regime and serves as a significant reminder of how industry can readily serve a totalitarian power. Today’s Volkswagen Group openly addresses this dark chapter, provides compensation to surviving forced laborers, and invests in research into its own history.