Volks wagen was created in Germany in 1930 to build cars that were accessible to a lot of people. Adolf Hitler promoted a plan to improve the automobile industry and compete against England and France. Ferdinand Porsche made the plans and designed the car but Hitler polished it by adding a lateral rod, rear lights and a modern front to give it a sporty look. The requirements were to have access to a navigable waterway and their own power plant to provide the factory and the town. Hitler named the car Kdf – Wagen that meant strength through Joy.
The first Volkswagen was the bettle. In order to finance the whole project to give the German people a lower car, the German government devised a system in which those wishing to own a Volkswagen had to contribute 5 marcos weekly. They saved 286 millions of marcos. Any of these people received their Kdf- Wagen because of World War II. After six years, the money of Kdf wagen was taken by Russia and Hitler never see and used the cars of his industry. On December 27, the series production Beetle began.
Volkswagen was originally founded in 1937 by the Nazi trade union, the German Labour Front (Deutsche Arbeitsfront). In the early 1930s German auto industry was still largely composed of luxury models, and the average German rarely could afford anything more than a motorcycle. As a result only one German out of 50 owned a car. Seeking a potential new market, some car makers began independent "peoples' car" projects – Mercedes' 170H, Adler's AutoBahn, Steyr 55, Hanomag 1,3L, among others.
The trend was not new, as Béla Barényi is credited with having conceived the basic design in the middle 1920s. Josef Ganz developed the Standard Superior (going as far as advertising it as the "German Volkswagen").In Germany the company Hanomag mass-produced the 2/10 PS "Kommisbrott", a small, cheap rear engined car, from 1925 to 1928. Also, in Czechoslovakia, the Hans Ledwinka's penned Tatra T77, a very popular car amongst the German elite, was becoming smaller and more affordable at each revision.
Ferdinand Porsche, a well known designer for high end vehicles and race cars, had been trying for years to get a manufacturer interested in a small car suitable for a family. He felt the small cars at the time were just stripped down big cars. Instead he built a car he called the "Volksauto" from the ground up in 1931, using many of the ideas floating around at the time and several of his own, putting together a car with an air-cooled rear engine, torsion bar suspension, and a "beetle" shape, the front hood rounded for better aerodynamics (necessary as it had a small engine).
In 1933, with many of the above projects still in development or early stages of production, Adolf Hitler got involved, demanding the production of a basic vehicle capable of transporting two adults and three children at 100 km/h (62 mph). He wanted his German citizens to have the same access to a car as the Americans. The "People's Car" would be available to citizens of the Third Reich through a savings plan at 990 Reichsmark (US$396 in 1930s dollars)—about the price of a small motorcycle (the average income being around 32RM a week).