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Volkswagen was founded in 1937 by the German Auto Association. Ferdinand Porsche, who later founded Porsche, was approached by German Chancellor Adolph Hitler to create a car for the masses. Porsche was successful, creating the 938 Kdf-Wagen or the VW Kafer. ("Kafer" is the German word for Beetle.)

KdF-Stadt, where the car was built, was taken control by the British after World War II. Ivan Hirst, a British officer, revitalized the factory and the surrounding area, renaming the car to Volkswagen.

The company entered the U.S. automobile market in 1949. The cars were first called "Victory Wagons" but officially sold as the Type 1.
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