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Volkswagen Aktiengesellsch A f t Historical Notes i 7 A series of publications from Volkswagen Aktiengesellschaft, corporate history Department Der lange Weg zum Global Player. Volkswagen Chronicle Becoming a global Player Historical Notes A series of publications from Volkswagen Aktiengesellschaft, Corporate History Department Volkswagen Chronicle Becoming a Global Player IMPRINT EDITORS for Corporate History Department of Volkswagen Aktiengesllschaft Manfred Grieger, Ulrike Gutzmann, Dirk Schlinkert TEXT Markus Lupa, Büro für Industriegeschichte DESIGN design agenten, Hanover PRINTED BY Druckerei Hahn, Hanover ISSN 1615-1593 ISBN 978-3-935112-11-6 © Volkswagen AG 2008 Wolfsburg 2008 CONTENTS Contents 1904 – 1945 6 The Volkswagen: from Dream to Reality 1945 – 1949 14 The British and their Works 1950 – 1960 32 Internationalization and Mass Production in Germany’s Economic Miracle 1961 – 1972 60 The Beetle-maker between Boom and Crisis 1973 – 1981 94 The New Generation 1982 – 1991 120 New Brands, New Markets 1992 – 2007 152 Globalization of the Mobility Group The Brands 210 Audi 218 Bentley 224 Bugatti 228 Lamborghini 234 Seat 240 Škoda 246 Volkswagen Financial Services 254 Volkswagen Commercial Vehicles 4 5 1904 – 1945 6 THE VOLKSWAGEN: FROM DREAM TO REALITY 1904 – 1945 The Volkswagen: from Dream to Reality Talk about a ”Volkswagen“ began in Germany in 1904. Republic, inspiring the fantasy of designers. Late fame Engineers were already of the opinion that the future of the was gained by the 18-year old Hungarian technology student automobile industry lay in the mass production of inexpen- Béla Barény, who submitted a ”Fahrgestell-Entwurf für sive small cars. Pioneering developments in America, where einen Volkswagen“ (chassis design for a Volkswagen) in a mass market for automobiles was gradually developing, 1925 and – along with August Horch, Ettore Bugatti, were observed with astonishment. Nevertheless, the debate Ferdinand Porsche and Heinrich Nordhoff – came to be concerning a ”people‘s car“ provoked by the American included in the ”Automotive Hall of Fame“. Although the model was accompanied by sceptical undertones because motorcycle was the front-runner in the motorization of passenger cars were then seen wholly as highly taxed luxury Germany during the 1920s, automobile manufacturers items. In addition, the troublesome technical aspects of were making obvious advances. Because of high vehicle the current automobiles that required much maintenance taxes and fuel prices, they pushed forward with the develop- spoke against the popularization of the automobile. ment of small engined, economically feasible vehicles. The first ”people’s cars“ were produced on the other side The Volkswagen was the main attraction of the internati- of the Atlantic starting in 1908, where mass purchasing onal automobile show in Berlin in the early 1930s, not as power and the means of production made the motorization a brand name, but as a classification. BMW, Mercedes, of American society possible. The Ford Motor Company, Opel, Ford, Adler and Hanomag, all presented cheap-to- founded by Henry Ford, produced the Model-T on an as- run models suitable for mass production in 1934 that were sembly line, which was soon viewed by European manu- marketed to the public as Volkswagens. The technical facturers as the prototype of rationalized mass production. requirements were already available and the Volkswagen By the time the last one was built in 1927, 15,007,033 ”Tin was on everybody‘s mind by the time the Nazi dictatorship Lizzys“ had left the Ford plant in Detroit. Through Henry came to power. Ford‘s influence, the idea of a Volkswagen became the leitmotif of automotive publications during the Weimar 7 FORD T 8 THE VOLKSWAGEN: FROM DREAM TO REALITY VEHICLE CONCEPT AND THE FOUNDATION OF THE VOLKSWAGEN PLANT The ”Reichsverband der Deutschen Automobilindustrie“ Adolf Hitler coined the name ”KdF-Wagen“ for the auto- (RDA) (Reich Association of the German Automobile In- mobile developed by Ferdinand Porsche. Accompanied by dustry) commissioned Ferdinand Porsche to design a Volks- a massive advertising campaign, the ”Deutsche Arbeits- wagen on June 22, 1934. However, the companies that made front“ introduced a KdF-Wagen savings installment plan on up the RDA had reservations about Adolf Hitler‘s requested August 12, 1938. Whoever paid a minimum weekly sum was price limit of 990 Reichsmarks. The doubts raised at the soon to become the proud owner of a Volkswagen, however, time because of currency shortages and the limited supply due to a lack of widespread mass purchasing power, the of raw material were accompanied by scepticism regarding ambitious production goals could not be reached. The de- the economic feasibility of a factory devoted only to the mand from only 336,000 savers was not enough to cover the Volkswagen. The financing of the entire project remained planned number of automobiles to be produced because the a problem. Volkswagen was in reality still too expensive for the average factory worker. The ”Deutsche Arbeitsfront” (German Labor Front) filled the gap in the chain of responsibility in 1937. The plan was Construction of the Volkswagen plant near Fallersleben to carry through with this Nazi prestige project which was began in early 1938. It was conceived as a vertical, prima- aimed at improving the image of its leisure time organiza- rily self-sufficient model factory. Size, essential technical tion ”Kraft durch Freude“ (Strength through Joy - KdF). On equipment and production depth were closely modeled May 28, 1937, the ”Gesellschaft zur Vorbereitung des Deut- on Ford‘s ”River Rouge“ plant in Detroit, which was then schen Volkswagens mbH“ (Company for the Preparation considered the most modern automobile factory in the of the German Volkswagen Ltd.) was established in Berlin. world. While labor shortages and difficulties in procuring The name was changed to ”Volkswagenwerk GmbH“ on raw material caused construction delays, the building of September 16, 1938 and was entered into the Commercial the facilities in Brunswick progressed swiftly. According to Register on October 13. Franz Xaver Reimspieß, an engine the plans of the German Labor Front, the regular workforce designer at Porsche KG, created the Volkswagen trademark, of the Volkswagen plant was to be trained there. Training the ”letters V and W contained in a circle”. The registration workshops for the workers began in October 1938; the application was filed on October 1, 1948 and the trademark production of tooling for the main plant, still under con- was registered with the German Patent Office on November struction, could begin by the end of 1938. 21, 1953. 9 FERDINAND PORSCHE SHELL OF THE VOLKSWAGENWERK PLANT VOLKSWAGEN PROTOTYPE 10 THE VOLKSWAGEN: FROM DREAM TO REALITY ARMAMENT PRODUCTION AND FORCED LABOR After the outbreak of World War II, the Volkswagen plant marily by using forced labor. Establishing a new company was reorganized for the production of armaments. At the without a regular German workforce meant that Polish end of 1939, the firm was contracted by the Luftwaffe to do women would be the first to be forced to work for Volkswa- repair work on the Ju 88 and to supply the aircraft industry genwerk. Later they were followed by prisoners of war and with fuel tanks and wings. In the course of the motoriza- by concentration camp inmates. In 1944 two thirds of the tion of the army after 1940, a second assembly line was set workforce was made up of foreigners. Approximately 20,000 up for the mass production of military vehicles such as the forced laborers who were allocated to the Volkswagen plant multi-purpose ”Kübelwagen“ and the ”Schwimmwagen,“ during World War II came from European countries occu- a four-wheel drive vehicle capable of travelling on land and pied or dominated by Germany. During this era of racism in water. By the end of the war, the plant that was built to enforced by the NS-state, these human beings were sub- produce 500,000 passenger cars a year turned out 66,285 jected to discriminating treatment and physical violence. military vehicles. Between 1940 and 1944, turnover in- creased from 31 to 297 million Reichsmarks. The American troops who entered the town on April 11, 1945 put an end to the production of military equipment and Incorporating the Volkswagen plant into Germany‘s liberated the forced laborers. The long-hoped for end of Nazi armament industry after 1941 lead to the annexation of dictatorship meant the start of a new era for Volkswagen. its subsidiaries in Luckenwalde and Ustron. In 1943/44, the company enlarged its production capacities by trans- ferring commissions to France as well as by constructing underground production sites in tunnels, iron ore mines and asphalt tunnels. After repeated bombings of the factory in 1944/45, moving parts of the production to provisional sites continued the decentralization of the company. The expanding armaments output of the Volkswagen plant after summer 1940 lead the company to meet its labor needs pri- 11 FEMALE FORCED LABORERS WORKING WITH SHEET METAL ASSEMBLY OF THE KÜBELWAGEN 12 13 1945 – 1949 14 THE BRITISH AND THEIR WORKS 1945 – 1949 The British and their Works During the turmoil of the immediate post-war period, to overcome many obstacles. Because the company manu- smoke above the Volkswagen plant signaled the continuity factured goods for the Allies, it had priority in supply of raw of production and the hopes of a new beginning. As the material that was then in short supply. The importance of largest and most important employer in a region with little this privilege during the time of economic control cannot be industry Volkswagen guaranteed the survival of the local overestimated. Like most raw materials, the steel that was population. The factory provided work, housing and food. indispensable for the production of automobiles was subject These functions were certainly in the minds of the British to a quota system.