[6][7] On 22 June 1934, Ferdinand Porsche received a development contract from the Verband der Automobilindustrie (German Association of the Automotive Industry) for the prototype of an inexpensive and economical passenger car after Hitler decided there was a need for a people's car—a car affordable and practical enough for lower-class people to own—to serve the country's new road network, the Reichsautobahn.

[8][9] Although the Volkswagen Beetle was primarily the conception of Porsche and Hitler, the idea of a "people's car" is much older than Nazism and has existed since the introduction of automotive mass-production.

[13][14] A series of thirty W30 development models, commissioned by Porsche and manufactured by Daimler-Benz, underwent testing in early April 1937,[15] covering a total distance of over 2,900,000 kilometres (1,800,000 mi).

[19][20] Kraft durch Freude (Strength Through Joy, a political organisation aimed at providing the populace with leisure activities) was in charge of this project.

Robert Ley, the Nazi official heading Kraft durch Freude (KdF), announced in 1938 that every German would own a Volkswagen within ten years.

Dieter Landenberger, the head of Porsche's historical archive, later affirmed that Barényi played a "decisive role in the authorship of the later VW Beetle".

[38] Josef Ganz's potential early contributions to the original Beetle's development remained controversial for years and lacked clear clarification.

[39][40] Ganz personally drove a Hanomag Kommissbrot and a swing-axle Tatra—both featuring elements such as a central tubular frame, independent wheel suspension, and a rear/mid-engine design.

[45] Hitler, an avid automotive enthusiast, rode in Tatras multiple times during political tours of Czechoslovakia and had frequent dinners with Ledwinka.

The Kommandeurswagen included a portal axle, a Schwimmwagen drivetrain, wider fenders, and oversized Kronprinz all-terrain tyres, reminiscent of the later Baja Bugs.

[67] Planned for September 1939, Kraft durch Freude arranged an event to showcase Germany's Autobahn highway system and to promote the purported beginning of the production of the KdF-Wagen, involving a 1,500-kilometre (930 mi) journey from Berlin to Rome.

[68] Erwin Komenda supervised the development process, while Karl Froelich was responsible for creating official plans that they subsequently used to form a wooden scale model.

[80][81] The Volkswagen facility, initially slated for dismantling and transportation to Britain under American control in 1945, faced a lack of interest from British car manufacturers; an official report included the phrase, "The vehicle does not meet the fundamental technical requirement of a motor-car [...] it is quite unattractive to the average buyer [...] To build the car commercially would be a completely uneconomic enterprise."

[98] While it was largely successful in the 1960s,[100] recording its highest sales growth in North America from 1960 to 1965,[101] the Beetle started facing competition from more contemporary designs worldwide in the 1970s.

[116] The overdependence on a singular model, which was experiencing a decline in popularity, meant that Volkswagen was in a financial crisis and needed German government funding to produce the Beetle's replacement.

Consequently, the company introduced a new generation of water-cooled, front-engined, front-wheel-drive models, including the Golf, the Passat, the Polo and the Scirocco, all of which were styled by the Italian automotive designer Giorgetto Giugiaro.

[103] In 1991, the planning of a new car began once J Mays and Freeman Thomas returned to California to open Volkswagen's Design Centre at Simi Valley.

To help gauge public demand of the forthcoming automobile in the United States, Volkswagen implemented a free-access telephone line to allow members to express their thoughts on the car.

[148][149] In 1958, the Beetle received a revised instrument panel, and a larger rectangular rear window replaced the previous oval design.

[152] In the mid-1960s, the traditional labels "standard" and "export" for the Beetle's model variants were superseded by numerical designations, approximately correlating with the engine displacements.

In the October 1961 issue of Motor Trend, Don Werner noted, "Five years ago, out of every ten imported cars sold, six were Volkswagens.

If the current VW starts to slip, the new [Type 3]—soon to be introduced—probably will be imported to justify the [company's] more than 600 [Volkswagen] dealerships and the $100 million investment in facilities".

Unlike its predecessor, the spare wheel was no longer positioned diagonally at the front under the hood but instead rested horizontally under a cover in the trunk area.

From late 1992 for the 1993 model year, Volkswagen standardised catalytic converters, the Bosch Digifant engine management system, a lambda probe and electric ignition.

The 1993 model also featured a third-generation Golf-style steering wheel and front seats, a protection alarm, handbrake and engine compartment lamps and an optional ZF limited-slip differential.

[169] From 1997, front disc brakes and an immobiliser became available, and the De Luxe model featured small traffic indicator side lamps ahead of the top door hinge.

In 1998, Volkswagen removed the small through-flow ventilation slots behind the rear side windows and standardised front disc brakes.

[196] The production of the Beetle was possible through agreements with companies like Chrysler in Mexico and the Studebaker-Packard Corporation, which assembled cars imported in complete knock-down form.

[199] The introduction of a new taxi regulation in Mexico City, requiring only four-door vehicles to be permitted to prevent robberies, influenced Volkswagen's decision to the end of the production of the Beetle in 2003.

[200][g] Formal introduction of the Volkswagen Beetle to the Australian market took place in 1953, followed by local assembly operations at the Clayton, Victoria facility in the subsequent year.