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1930’s-The Original Beetle

1930’s-The Original Beetle. In The Beginning. History Mid 1930’s, Wolfsburg, Germany : Ferdinand Porsche first envisions idea of ” Volksauto ,” a people’s car Named Kraft durch Freude or “Strength through Joy” car; dubbed “Beetle” by The New York Times in 1938

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1930’s-The Original Beetle

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  1. 1930’s-The Original Beetle

  2. In The Beginning History • Mid 1930’s, Wolfsburg, Germany : Ferdinand Porsche first envisions idea of ”Volksauto,” a people’s car • Named Kraft durchFreudeor “Strength through Joy” car; dubbed “Beetle” by The New York Times in 1938 • Germany’s equivalent to Jeep during late 30’s and early 40’s-used in World War II • 1949: Introduced to America, attracts cult-like following • By 1970, car is considered American Icon

  3. People Are Talking Perceptions • Beetle stands out from cookie-cutter styles of oversized, overpriced domestic cars and appeals to new generation of Americans • Popular among budget-minded students and drivers who seek individuality and personal style through the vehicle • Drivers feel intense loyalty; find car’s flaws endearing

  4. Dark Times Ahead • 1979: Beetle’s run in America comes to abrupt stop because of VW’s inability to meet requirements of two pieces of legislation: • National Highway Safety Act of 1966 • Clean Air Act of 1970

  5. Sales Overview-Beetle versus VW H:/Share/Kopp/Studyq/New Beetle/Beetle_Cases_Class Slides.ppt

  6. The start of the decline for VW in the 1970s:“Failure to keep in step with American consumers’ ever-changing demands” • ↑of Deutsche mark v. USD • 1982 recession • ↓ preference for hatchbacks • ↑ gas prices • New environmental laws • New competitors VW Sales History in the United States Pressures on American consumers Single-product successes • Beetle • Rabbit • Microbus Source: Exhibit 2 in HBS Case: The New Beetle

  7. Reincarnation of the Beetle • 10+ years after last Beetle is sold in US, VW executives consider idea of revamping the car to invigorate slumping sales of VW franchise • Designers’ Vision: • classical elements • cutting edge technology • modern detail • superior driving performance • honest, simple, reliable, original • 1993: VW moves forward with “Concept 1” • 1994: First public showing-North American International Auto Show , Detroit

  8. 1994: The New (and Improved!) Beetle

  9. BOE Analysis-Four P’s

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