Volkswagen
Volkswagens were first exhibited and sold in the United States in 1949, but sold only two units in America that first year. On entry to the U.S. market, the VW was briefly sold as a "Victory Wagon". Volkswagen of America was formed in April 1955 to standardise sales and service in the United States. Production of the Type 1 Volkswagen Beetle increased dramatically over the years, the total reaching one million in 1955.
Automotive industry in Germany
Volkswagen was faced by major financial difficulties in the early 1970s; with its ageing Beetle still selling strongly all over the world but its newer models had been less successful. However, the company then enjoyed a revival with the arrival of the popular Passat in 1973, Golf in 1974 and Polo in 1975 - all of these cars featured the new front-wheel drive hatchback layout which was enjoying a rise in popularity across Europe after first being patented by Renault of France with the R16 in 1965. The Polo was Volkswagen's new entry-level model, and was aimed directly at modern small hatchbacks like the Fiat 127 and Renault 5. The mid-range Golf was seen as the car to eventually replace the Beetle, and was easily the first popular hatchback of this size in Europe, leading to most leading carmakers having a similar-sized hatchback by the early 1980s. Production of the Beetle finished in Germany in 1978, although it continued to be produced in Mexico and Brazil until 2003, with a small number of models being imported to Germany and the rest of Europe during its final 25 years. The Passat was marketed as a more advanced alternative to traditional larger saloon cars like the Ford Taunus/Cortina, Opel Ascona (sold in Britain from 1975 as the Vauxhall Cavalier) and the Renault 12.