Legacy

Volkswagen AG is a global company headquartered in Germany, but it has deep roots in the United States. While millions of Americans have an emotional connection to the company because of the Beetle, the story of Volkswagen Group of America starts in 1955.

The Audi brand came to the United States in 1969 and quickly established its own legacy.

Realizing the vast potential of the U.S. market long before other foreign automakers, Volkswagen of America, Inc. (as the U.S. unit was then known) was formed in New York City in 1955, eventually moving to Englewood Cliffs, N.J. At a time when American automakers were competing to build ever larger cars, Volkswagen showed that American consumers also wanted innovative, fun, and fuel-efficient vehicles.

Within 10 years, sales were skyrocketing, and the company had more than 900 dealers across the United States.

By 1970, Volkswagen had captured seven percent of the U.S. market. Two of the cars from that era, the Beetle and the Volkswagen Transporter — more commonly known as the “Bus” — became enduring cultural icons. They continue to serve as emotional touchstones for an entire generation, creating a powerful tie between the company and American consumers.

In 1978, Volkswagen became the first foreign automaker since the 1920s to open an assembly plant in the United States. The facility, located in New Stanton, Pennsylvania, closed 10 years later, due to unfavorable exchange rates, growing competition from overseas, and other factors.

While Volkswagen was capturing American hearts, Audi was establishing its reputation for quality, performance, and technological innovation. Audi, which became a wholly owned subsidiary of Volkswagen AG in 1965 and began exporting cars to the U.S. in 1969, introduced Americans to front-wheel drive vehicles at a time when few were even aware of the technology.

Audi sales grew dramatically in the early 1970s, giving the brand a solid foundation for future U.S. business.

Bentley Motors became a part of the Volkswagen AG family in 1998. Bentley worldwide sales in 2007 were up approximately 7 percent to more than 10,000 units. In North America, nearly 4,200 Bentley’s were delivered to customers in 2007, up from 4,000 the year prior. This compares to fewer than 1,000 global and 420 North American sales in the 2003 calendar year – or a ten-fold increase in four calendar years.

As we move into this century, the company is making an aggressive new effort to increase market share. With a new name, a new organizational structure, and a planned move to a new corporate headquarters in the Washington, D.C. area, Volkswagen Group of America is entering a new era.