Volkswagen Chronik 1982 1991

7/21/2019 Volkswagen Chronik 1982 1991

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19821991

New Brands, New Markets

As the world automobile industry underwent structural change, the Volkswagen Group evolved into a

multi-brand alliance with a global production network. By employing volume policies, Volkswagencourageously took advantage of opportunities offered in the European and Asian markets during the 1980s tocounter the negative trends in the automotive industry. Volkswagen dealt with negative trends, increasedpressure from the competition in Europe and North America, higher energy prices, instability on internationalcurrency markets as well as ecological demands on the automobile industry. All of these cried out for newproducts and production concepts. Volkswagen met these challenges with a program containing equal parts ofinnovation and achieve to expand guided by advancements in automotive engineering and flexible productiontechniques. On the other hand, the strategy called for taking advantage of opportunities for internationalcooperation and strengthening the Group by lowering production costs through an international division oflabor.

Volkswagen initiated forward-looking cooperative ventures in the Asian-Pacific region, which drew attention toitself as a potentially important export market due to its dynamic economic growth and lower production costs.

The licensing agreement signed with Nissan in 1982 strengthened Volkswagen's presence on the Japanesemarket and gave the company the opportunity to closely observe the flexible and productive system set up by

Japanese manufacturers. Starting in early 1984, Nissan began assembling the Santana and marketed itthrough its own sales organization. Although the Volkswagen Group rose to become the leading foreignautomobile importer in Japan, protectionist measures blocked a further expansion of the exports business. Itwas only after the Japanese market opened during the late 1980s that the requirements for a volume-orientedexport strategy came into existence. Volkswagen Audi Nippon K.K., which grew out of the consulting firmVolkswagen Asia Ltd. during mid 1989, could start establishing an independent sales system.

At the core of the company's Asian involvement was the People's Republic of China. Its reform policies openedthe way to a market of great future potential and offered itself as a striving industrial partner. At the sametime, the Chinese government expressed confidence in the Wolfsburg company because of its pioneeringdevelopment of an automobile industry in Brazil and Mexico. By 1980, both sides were negotiating the

construction of an automobile manufacturing plant. However, the proposed large-scale project was abandonedbecause it did not take into account China's industrial situation or the limited financial possibilities of theGroup. Gradual production increases were preferred. An assembly contract signed in 1982 with the Shanghai

Tractor & Automobile Corporation formed the prologue to a successful German-Chinese enterprise, whichbegan in 1985 with the founding of the joint venture Volkswagen Shanghai Automotive Company, Ltd. andthe start of production of the Santana. In the course of increasing capacity, the joint venture became China'slargest passenger car producer and made Volkswagen market leader in the People's Republic. Theestablishment of a second joint venture in February 1991 assured this position for the longer term. Like theVolkswagen plant in Shanghai, FAW-Volkswagen Automotive Company, Ltd. in Changchun manufactured forthe Chinese market as well as for the Volkswagen Group.

At the same time that Volkswagen entered the Chinese market, the company smoothed the path to theleadership position in Europe, where since 1982 the export business improved. In spite of a weakened

automobile economy, the Group's turnover totaled just under 619,000 vehicles, improving on its figures fromthe year before. France, Italy and Great Britain, where more than 100,000 vehicles each were sold, wereamong the most important customers. In Spain, however, where imminent membership in the EuropeanCommunity meant that a substantial growth of the automobile industry could be expected, Volkswagen wasbarely represented. After import limitations on passenger cars were lifted, Volkswagen formed its own salesorganization in May 1981 as a first step in gaining access to the Iberian market. A further step involved thesigning of a cooperation agreement with the state owned automobile manufacturer Seat. Volkswagen quicklyfilled the gap left by Fiat when it discontinued business relations with the Spanish company. With the licensingcontract for the production of the Polo, Passat and Santana the Volkswagen Board intended to makeVolkswagen number one in Europe. Only after Polo production was transferred to Spain could capacity inWolfsburg be made available for the expansion of Golf production. The cooperation with Seat bore first fruit by1984. The sales of Volkswagen and Audi vehicles climbed in Spain from 2,379 vehicles in 1982 to 28,667 andthe company was able to strengthen its market positions in Switzerland, the Netherlands, Belgium andScandinavia. With just under 760,000 vehicles sold and a sales increase of about 24 percent, the VolkswagenGroup reached the number one position in Europe for the first time in 1985. Because of this position, there waslittle problem in taking over Seat in June 1986. Just like the Auto Union some 20 years earlier, Seat entered the

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Volkswagen Group as an independent brand. Seat's separation from Fiat, however, left scars, because it forcedthe Spanish company to undertake the difficult task of developing its own range of competitive products.Substantial investments in production efficiencies and development were necessary before the SpanishVolkswagen subsidiary showed a profit in 1988.

While Volkswagen was conquering new territories in Europe and Asia, business continuously fell off in the

United Sates during the 1980s. More competition from Japanese manufacturers, who not only increased theirexport quotas but also enlarged their production capacities there, caused a stagnation of Volkswagen ofAmerica's sales in 1986. As the year before, the Jetta remained the company's best selling model, butproduction of the Golf in the United States had to be cut 13 percent because it did not meet salesexpectations. The drop in turnover and surplus capacity forced management of the Volkswagen Group to closethe Westmoreland plant in November 1987. The Mexican plant in Puebla took up production of the Golf and the

Jetta for the North American market.

South America's unstable economic development and high inflation resulted in losses for Volkswagen'sBrazilian and Argentinean subsidiaries. Volkswagen do Brasil stopped producing the Beetle in October 1986when the government introduced price controls. In order to safeguard its involvement in South Americawithout the necessity of making unlimited new investments and to reduce risk, cooperation with Ford wasagreed in October 1986. By establishing AUTOLATINA, the two manufacturers combined their Brazilian

activities under a joint holding company. Volkswagen took responsibility for technical matters and Fordconcentrated on financial matters. The planned merger of Volkswagen do Brasil and Ford Brasil fell throughbecause of Brazil's dealership law, so both companies remained legally independent firms. Nevertheless, theircost structures improved thanks to synergy effects and joint production. Autolatina Argentina's situation,however, remained critical, so that a merger of the sales networks was considered in 1990. It was only afterthe Car Agreement settled on during the early 1990s by the trade and commerce ministries, trade unionsand automobile industries of both countries that the car business received new and lasting impulses. Thecooperation between Volkswagen and Ford resulted in a second joint venture in Portugal in 1991, where acapital and risk sharing enterprise was set up to produce a multi-purpose vehicle for the European market.

The collapse of socialist planned economies in Eastern Europe offered an unexpected direction for theexpansion of the Wolfsburg company. Immediately after the wall fell in November 1989, Volkswagen enteredinto negotiations with the automobile industry in Saxony, with which it already had a long-term business

relationship. Together with the IFA-Kombinat Personenkraftwagen in Chemnitz, Volkswagen formed aplanning company in December 1989, to prepare for the development and production of an internationallycompetitive vehicle. In anticipation of the large demand for western passenger cars Volkswagen invested inexpanding production in Mosel, Chemnitz and Eisenach because their technical standards and capacities werenot up to par with the requirements of efficient mass production. A modern assembly plant was built in Moselwith a capacity of 250,000 vehicles a year. The factory in Chemnitz supplied engines; cylinder heads weremanufactured in Eisenach. After their capacities were enlarged both plants also produced for the VolkswagenGroup.

The upheavals of 1989 gave Volkswagen AG the unique opportunity to enter Eastern European market.Volkswagen's management board saw opportunities in the Czechoslovakian automobile manufacturer koda,which owned a valuable brand name and had a long tradition as well as highly qualified workforce. Expectingon economic upturn for the automobile industry, Volkswagen prepared for expansion by introducingcomprehensive social benefits and set aside lay offs for a restricted period, which pleased the workforce andthe Works Council. In 1991, koda emerged as the fourth independent brand within the Volkswagen Group.Declining markets sales at home and in Eastern Europe thwarted all of the perhaps too optimistic forecasts.

Volkswagen developed into a globally producing Group with plants on four continents. By setting up productionin Asia as well as in Eastern Europe, Volkswagen was not only able to enter potentially profitable markets, butalso establish plants that could be run at lower costs. Growth and multi-market strategy lead the VolkswagenGroup to the pinnacle of the European automobile industry, allowing the company to expand its product rangein such a way that it could develop vehicles for all tastes and demands. The price of this expansion was drivenhome by the economic crisis of 1992.



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1982January 1Carl H. Hahn becomes Chairman of the Volkswagenwerk AG Board ofManagement.

1982JanuaryA long-term crisis begins for Volkswagen of Nigeria Ltd. Continuousrecession, restricted price competitiveness and a lack of support by theNigerian government, who react to currency shortages by introducing statecontrols on imports and production cuts on industries relying on imports. Asa result, production was shut down several times during the 1980s due to ashortage of materials. In March 1990, Volkswagen decides on an orderlyretreat from business in Nigeria because a fulfillment of market potentials isnowhere in sight. Volkswagen of Nigeria is operating at only 5 percent ofcapacity and expenses far outweigh the minimal revenues. Negotiationsbegun in 1992 on the sale of Volkswagens Nigerian subsidiary to a Nigeriancompany were discontinued because of internal power struggles. The lastGerman employees leave in 1994. Since then production has been shutdown. In April 2006, Volkswagen AG sells its remaining shares in BarbedosVentures Ltd. registered in Tortola/British Virgin Islands.

1982June 8A trial assembly contract with the Shanghai Tractor & AutomobilCorporation is the beginning of the Volkswagen Groups involvement in thePeoples Republic of China. The goal of this cooperation is the establishmentof a joint venture to produce the Santana.

1982JuneVolkswagenwerk AG signs a cooperation agreement with the Nissan MotorCo., Ltd. in order to produce the Santana in Japan. Nissan provides the

manufacturing facilities and its sales organization while Volkswagen deliversengines, transmissions and chassis. In order to help Nissan, Volkswagenforms a consulting company, Volkswagen Asia Ltd., on July 7, 1983 whichat the same time is responsible for gearing up the import business. TheSantana, built near Tokyo in Zama, comes onto the Japanese market inFebruary 1984.

1982Volkswagen again clockes up many motorsport successes in 1982. Bywinning the German Formula 3 championship with John Nielsen, Volkswagendemonstrates the superiority of the high-performance engine based on theGolf GTI which powers the Ralt-RT-3.



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1982Volkswagen extends its light truck type program with the LT 50 modelseries. With a payload of 1.6 to 1.9 metric tons and a gross vehicle weightrating of 5 metric tons, a third wheelbase variant and a new 2.4-litersix-cylinder carburetor engine, the LT 50 satisfies market demand for morepower, greater comfort and optimum efficiency.

1982September 30A cooperation with Sociedad Espaola de Automviles de Turismo, SA(Seat) opens the way for Volkswagenwerk AG to enter the Iberian market.

The Spanish automobile manufacturer handles the sales of importedVolkswagen and Audi models with its own dealer network. Starting in early1984 it produces licensed versions of the Passat and Polo. Transferringproduction of the Polo to Spain opens up capacity in Wolfsburg, augmentingGolf production and helping Volkswagen to reach the top of the Europeanautomobile industry.

1982Now operating a plastics factory on the site of the former Olympia Works,the Brunswick plant adds a third string to its bow, in addition to themanufacture of the car parts, and mechanical engineering and toolmanufacturing. Fundamental to lightweight construction, plastics andaluminum are of growing importance to the automotive industry as the useof lightweight materials in engines, wheels and axles reduces the totalweight of the vehicle and, in turn, fuel consumption.

1982November

The Caddy, a combination of passenger car and commercial vehicle, goes

into series production. The vehicle, a pickup in the 1.2-tonne payloadcategory, pickup, is based on the Golf and comes in three lines: openpickup, covered pickup and hardtop panel van. There is a choice of engines:1.5-liter, 70hp carburetor engine and a 1.6-liter 54 hp diesel engine. TheCaddy is built at the Volkswagen subsidiary TAS in Sarajevo, Yugoslavia.

1982In South Africa, the newly-launched Santana is named Car of the Year. TheGolf GTI, part of the local product range since November, is chosen as thebest vehicle in its engine category.

1982Von 0 auf 50 in 3,3 Sekunden. (From 0 to 50 in 3.3 seconds.)

Agency: Doyle Dane Bernbach



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1982Kam, sah, siegte: Der Passat. (Came, saw, conquered: The Passat.)


1983Volkswagen do Brasil, the oldest Volkswagen production company abroad,looks back on its first thirty years. While commitment in Brazil was initiallylimited to importing and assembling CKD kits, Volkswagen do Brasil hadalready begun to produce Beetles and Transporters at its specially-builtplant in So Bernado do Campo back in 1957. In 1973 the company beganbuilding the Brasilia, the first locally designed model developed specially forthe South American market.

1983

Production of the Golf 1 stops in October after 6,005,635 models have beenbuilt. Volkswagen continues to establish long-term model continuity in thissegment with the Golf 2

1983JuneWith the start of production of the second Golf generation in the speciallybuilt final assembly hall 54, the Volkswagen Group enters a new technicalera. For the first time robots are involved in building a vehicle that isdesigned for automated assembly. New concepts raise the level of

automation to 25 percent and make ergonomic structuring of jobsnecessary. Due to its softer, more elegant form, larger interior and reworkedengine, the new Golf can continue the sales successes of its predecessor.

This is partly due to the variety of engines and features, for example theall-wheel drive of the Golf syncro.

1983Volkswagen Argentina presents the Gacel, the first Volkswagen passengercar built in Argentina. Volkswagens Brazilian subsidiary supplies key partsand components for this South American Volkswagen, producing andmarketing the vehicle under the name of Voyage.

1983OctoberIn the Barrie, Ontario plant, Volkswagen Canada Inc. starts production ofautomobile parts for Volkswagen of America, Inc. During the second half of1984, the plant also begins to manufacture alloy wheels for the NorthAmerican market. A 24 percent drop in sales due to the recession the yearbefore is offset by growth of a good 25 percent in 1984. With the delivery of30,648 Volkswagens and Audis, Volkswagen Canada can slightly increase itsmarket share to 3.1 percent. The Barrie plant is sold to Alloy WheelsInternational Ltd. on August 1, 1996.



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1983On Lake Wrth, in Kiel or on Lake Aller in Wolfsburg the amphibious GolfConvertible is certain to make heads turn. Volkswagen tests theperformance on water of a 150 hp, four-cylinder in-line engine designed fornormal road use with this unique vehicle. Fitted with this engine, thespecially designed Golf on its hydraulically activated floats reaches amaximum speed of 30 kilometers per hour, providing engineers withvaluable information on engine performance at maximum stress andconstant load.

1983Apart from vehicle manufacture, engine production and foundry productsplay an important role at the Hanover plant. Each working day, the plantassembles 250 water-cooled boxer engines for Transporter production and1,500 water-cooled four-cylinder engines for passenger car production atother plants. 250 tonnes of aluminum are processed every day in the alloyfoundry to produce engine crankcases and other cast parts for commercialvehicles, while some 850 tonnes of sheet steel are processed.

1983December 20Volkswagen-Gesellschaft fr Datenverarbeitungssysteme mbH, foundedwith the participation of the city-state Berlin and Schleicher GmbH & Co.Relais-Werke KG, is entered into the commercial Register. Volkswagen hasa 50 percent interest in the Berlin subsidiary, which concentrates on usingthe Groups expertise in the field of technical software. During the comingyears gedas expands its services and customer base. The company,renamed gedas GmbH on January 1, 1998, develops and implementssystems solutions for the entire automobile and production industry. In2000, gedas rises to become the third largest German IT consultingcompany and one of the leading e-business systems integrators in Europe.Seventeen group companies with a total of 3,808 employees belong to thegedas Group, which is also represented in important overseas markets.Gedas GmbH is converted into a joint stock company on May 27, 2001, andis sold to the Telekom subsidiary T-systems on January 1, 2006.

1983DecemberSeries production of the second-generation Jetta begins at the Wolfsburgplant. Larger overall dimensions mean a significant rise in interior comfortand convenience. As is the case for the Passat, Volkswagen equips the Jettawith a reinforced four link rear axle which, combined with self-adjusting axlebearings and greater suspension travel, enhances drive safety. Four

versions of the Jetta come to market the Jetta C, CL, GL and Carat,distinguished by their degree of comfort and functional features.

1983Volkswagen machen Sie nicht zum armen Schlucker. (Volkswagen wontguzzle your paycheck.)

Agency: Doyle Dane BernbachCreative Director: Michael BorchArt Director: Boris EuckerIllustrator: Willi Riese



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1983Schnell, schnell, schnell. (Fast, fast, fast.)

Agency: Doyle Dane BernbachCreative Director: Michael BorchArt Director: Walter Tschirren

Texter: Michael BorchPhotographer: Werner Deisenroth

1983Does your car make you a poor devil?

1984February 3

The research center opened at the plant in Wolfsburg brings together over600 employees under one roof. With the exception of the climate windtunnel and parts of central measuring technology, all areas of research aregrouped together in the new, 15 thousand square meter building equippedwith state-of-the-art technology.

1984The IRVW 3 (Integrated Research Volkswagen) continues the series ofWolfsburg research vehicles which began with the ESVW 1 in the early1970s. Volkswagen engineers and designers put together an integratedpackage of numerous technological solutions which was fitted to the IRVW 3.

Innovations in the IRVW 3 which later became standard in all Volkswagenseries models include a traction control system, an automatic anti-blockingdevice, power-assisted steering and an electronic travel navigator.

1984Exclusive equipment and understated design characterize the luxury Caratversion of the Volkswagen Caravelle. Designed as a mobile office andconference room for business people, the Carat has rotating seats, a foldingtable, reading lights and space for a phone system.

1984The Volkswagen Emden plant, the hub for exports overseas, looks back on20 years of operation. Once Beetle production in Wolfsburh had been closeddown in 1974, the Emden plant produced a further 2.36 million of thelegendary model until 1978. From 1977 onwards, the plant mainly producesthe Passat, with six million units built there to date.

1984JulyVolkswagens products for the domestic market are increasingly beingequipped with three-way catalytic converters. As a pioneer of thistechnology, Volkswagen reacted early to the demand for environmentally

friendly automobiles. The Golf and Jetta models equipped with four-cylinderdiesel and turbo-diesel engines already meet Americas strict emissions



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regulations. All passenger cars built in Europe after 1977 can be driven withlead-free gasoline. Starting in 1984, Volkswagen offers special conversionparts for all of its models cutting hydrocarbon and nitrogen emissions byhalf. A newly developed micro catalytic converter makes the conversion ofsmall capacity possible. By November 1987, Volkswagen completed thechangeover of its production to catalytic converter technology. Since then,

all Volkswagen passenger cars equipped with gasoline engines are availablewith catalytic converters. The decisive breakthrough came in 1989, andVolkswagen was able to celebrate the world premiere of the first dieselengine with a catalytic converter. The 60 horsepower engine consumes only4.6 liters per 100 kilometers. The turbocharger optimizes combustion,reducing soot emissions even at full speed.



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1984The Passat family follows in the footsteps of the Golf and Jetta model rangeswith a clearly structured equipment program for the C, CL and GL versions.Following a recent facelift the space wizard has significantly enhanceddesign dynamics and a greater range of interior fittings.

1984Volkswagen of South Africa begins building the Golf 2 in October. Themodels market launch aims to strengthen the companys competitiveposition on the South African passenger car market as the current financialyear brings market share losses.

1984November

Volkswagen AG signs a contract with the foreign trade company of theGerman Democratic Republic licensing the production of engines.Volkswagen provides the necessary plant. For its part, the GDR deliversproducts from the engineering and electrical industries. The plannedproduction of short blocks for the Group is postponed to the end of 1989because of planned economy constraints.

1984Rising production figures, chiefly due to growing demand for the Golf 2 andthe Transporter, plus the successful rationalization efforts in productionbring the turnaround for the company on the Mittellandkanal. After twoyears of heavy losses, the Volkswagen Group reports a profit of 228 million

DM.

1984In aller Bescheidenheit: Deutschlands Nr. 1. (In all modesty: GermanysNo. 1.)

Agency: Doyle Dane BernbachCreative Director: Werner ButterArt Director: Dieter Mller

Texter: Michael KrllPhotographer: Manfred Rieker



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1984Legen Sie Ihr Auto doch mal daneben. (Put your car aside for once.)



1985JanuaryA marketing strategy developed by Volkswagen of America, Inc. calling for astrengthening of the individual brand identity of Volkswagen and Audiaccompanies a reorganization of responsibilities for sales and service.Volkswagen of United States, Inc. assumes responsibility for Volkswagen,and Audi of America, Inc. has the same task for the Audi brand. These twonew companies are not independent firms, but rather divisions ofVolkswagen of America, Inc.

1985February 16After many years of negotiations, an agreement signed in Beijing on October10, 1984 opens the path to the establishment of the Shanghai-VolkswagenAutomotive Company, Ltd.. Volkswagenwerk AG has a 50 percent share inthe joint Chinese-German enterprise, which begins producing the Santanaon September 1, manufacturing 1,700 vehicles by the end of the year.Qualified employees staff a training facility opened at the end of August1988. The new paint shop opened in October 1989. The following yearengine production began and the press shop started operations. In thecourse of expanding its capacity, Shanghai Volkswagen developed intoChinas largest and most modern passenger car plant. Between 1986 and1991, yearly production increased fourfold from 8,471 to 35,000 vehiclesand the workforce rose from 1,911 to 3,064 employees. Local productiongrew to 70.4 percent, with the result that Shanghai Volkswagen no longerhad to apply for licenses to import construction parts after June 1991.

1985The American specialist journal Motor Trend votes the Golf GTI Car of theYear 1985. Nicknamed the pocket-size rocket, the Golf GTI takes poleposition for quality, comfort, drive characteristics, acceleration, handling andconsumption.

1985Volkswagen now offers the entire Transporter model range with permanentall-wheel drive. At the heart of the syncro technology is a visco clutch whichautomatically distributes torque to the front and rear axles as required. Atramp-up, the Transporter syncro features a 1.9-liter, 78 hp water-cooled

boxer engine. A 70 hp four-cylinder diesel in-line engine with exhaustturbocharger is added later, and the Caravelle is given a more powerful



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2.1-liter, 112 hp direct-injection engine. The syncro models hold a leadingposition on the commercial vehicles market thanks to their high passivesafety, stable drive characteristics, improved suspension comfort andspacious design.



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1985July 4The Annual shareholders meeting (Hauptversammlung) decides to changethe name of the company from Volkswagenwerk AG to Volkswagen AG.

1985Volkswagen presents the highlights of its current model range as well asautomobile concepts of the future at the Frankfurt International Motor Show(IAA).

1985A Golf Diesel with series equipment drives through twelve European

countries on one tank of fuel, covering a distance of 2,163 kilometers.Average fuel consumption on the journey from Italy to Norway is anincredibly low 2.69 liters per hundred kilometers.

1985Rising global demand for the Golf means an increase in production capacityat many Volkswagen plants. Volkswagen Bruxelles S.A. also profits from theGolf boom, growing production by 25.7 percent year-on-year to 168,756units. Organizational adjustments are made to increase daily capacity from720 to over 800 units in preparation for the coming year.

1985Production flexibilisation and rationalization, the continued development ofthe model range and entry into new markets pays off in 1985. For the firsttime the Volkswagen Group delivers more vehicles in Europe than any othercarmaker.

1985Amerikas Bester. (Americas best.)


Creative Director: Werner ButterArt Director: Boris EuckerTexter: Peter OprachPhotographer: Reinhart Wolf



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1985Das Auto der Nation. (The national car.)



1985Ausstattung. (Equipment)

The improvements in series equipment for the Golf are almost too many toinclude in a TV commercial.

1986Volkswagen presents its latest design study the Scooter to the public atthe Geneva Motor Show. The engine drives the two front wheels on thisthree wheel experiment while a rear wheel with single arm suspensionprimarily serves to investigate styling and drive dynamics. A transversefour-cylinder gasoline engine fitted to the fore of the front axle in theaerodynamically designed two-seater delivers 40 hp in the version withcarburetor and 90 hp in the direct-injection version. Despite its slim lines

3.17 meters long, 1.50 meters wide and 1.24 meters tall the Scootercomplies with all valid European safety regulations.

1986April 24Walter Hiller is elected Chairman of the General Works Council and alsoassumes the post of Chairman of the Group Works Council on May 6.

1986June 18After a period of successful cooperation, Volkswagen AG at first acquires 51percent of the shares of the Spanish automobile manufacturer Seat, S.A.,which is integrated into the Volkswagen Group as a third independent brand.Volkswagen thus gains access to a new market, completes its sub-compactclass product range and stabilizes its leadership position in Europe. As partof the reorganization of the Seat Group, the Pamplona site used for Poloproduction is taken out in December 1993 and transferred toVolkswagen-Audi-Espana, S.A. under the new name Fbricia Navarra de



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Automviles, S.A.. Now the manufacture of Seat models is concentrated onthe Martorell site near Barcelona. It officially opens on February 22, 1993.With a daily capacity of 1,500 vehicles and production cycle of less than 20hours for one vehicle, it occupies a leading position in the Europeancar-making industry.



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1986June 30Because of the expansive development of the leasing business in NorthAmerica and in order to improve internal development, the holdings ofVolkswagen of America, Inc. in this area are reorganized. On June 30, thebusiness of Volkswagen Financial Corporation is transferred to VW Credit,Inc. and Vorelco, Inc. merges with Volkswagen of America, Inc. onDecember 31.

1986Volkswagen do Brasil has a broad model range which also includescommercial vehicles up to a maximum of 13 metric tons. Special vehiclessuch as an armored Transporter also feature in the production program.

1986The Volkswagen Group grows as Seat is integrated. Apart from this plant inPamplona, production facilities in Barcelona, Prat de Llobregat and theresearch and development center in Martorell are also added. In 1986,23,591 employees at these sites produce a total of 338,548 vehicles.

1986The two hundred thousandth Volkswagen to go into service with DeutscheBundespost is a Golf 2 in the yellow dress of the German postal service.

1986Winning the drivers world championship in Group A rounds off the bestmotorsport year yet for Volkswagen. Kenneth Eriksson and Peter Diekmannwin the title in a near-standard Golf GTI.

19861986 is a record year for Volkswagen AG. Production rises 15.8 percent to

just under 2.8 million vehicles, making the Volkswagen Group the worldsfourth largest passenger car manufacturer. 42 percent of all vehicles leavethe assembly lines at Group plants in Belgium, Spain, Yugoslavia, Mexico,Brazil, Argentina, South Africa, Nigeria, China and the USA.



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1986December 31In order to tighten sales activities in the United States market, Volkswagenagrees with the Volkswagen/Audi distributor Riviera Motors, Inc. in Oregonnot to renew their distributor agreement. By taking over distribution,Volkswagen seeks greater influence over the market and dealer serviceactivities in this region in an attempt to implement streamlining measures.

1986Some of the greatest Americans are German.

Agency: Doyle Dane BernbachCreative Director: Michael BorchArt Director: Gnther Bauregger

Texter: Michael BorchPhotographer: Michael Pintado

1986Sonne, Mond und Cabrio. (Sun, moon and cabriolet.)

Agency: Doyle Dane BernbachCreative Director: Michael BorchArt Director: Boris Eucker

Texters: Volker Dsberg, Peter Oprach

Photographer: Reinhart Wolf

1987January 1Under the impact of a big sales drop in the South American market,Volkswagen AG and the Ford Motor Company combine operations within thisregion in a holding company to strengthen their competitiveness throughsynergy effects. The contract of May 27, 1987 sets up the joint ventureAutolatina Comrcio, Negcios e Participaes Ltda. which officially startsoperations on July 1. It coordinates activities of Volkswagen do Brasil S.A.and Ford do Brasil S.A. Both continue in legal terms as companies in theirown right. The Argentine subsidiaries of both groups are brought together as

Autolatina Argentina S.A.. Both partners continue operations for their ownbrands, so sales and customer services remain separate and based ondistinct sales organizations and dealer networks. After the Brazilian marketis opened for car imports, Ford and Volkswagen end their cooperation inApril 1995: The contractual separation of the companies is completed onDecember 1 of the same year in Brazil and on January 1, 1996 in Argentina.

1987The fifty millionth Volkswagen, a Golf GTI 16 V, leaves the assembly line inWolfsburg in the presence of numerous guests from politics and industry.

The success story began with the start of Beetle production on December27, 1945: Beetles were built in Germany until 1978, with productioncontinuing in Mexico and Brazil until 2003. In 1974, the Volkswagen Golf

followed in the footsteps of the Beetles success. Volkswagen is in bettershape in this anniversary year than during the Beetle era. Diversification of



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the model range and the reorganization of the production system ensure aflexible response to customers wishes. Moreover, the three brands in theVolkswagen Group and production facilities on five continents make surethat Volkswagen has the right car for almost every taste and budget.



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1987The Tarifvertrag zur sozialen Sicherung der Arbeitnehmer bei technischenund arbeitsorganisatorischen nderungen (collective agreement on socialsafeguards for employees in the event of technical changes andmodifications to work processes) supercedes the rationalization protectionagreement of 1968. The agreement applies to the Wolfsburg, Brunswick,Hanover, Kassel and Emden plants and includes better job protectionprovisions as well as stipulating the qualification of employees in line withrequirements in the interests of the company and the workforce.

1987JuneVolkswagen AG signs an agreement in principle with the Japaneseautomobile manufacturer Toyota for the construction of a 1-ton pickup. In

January 1989, the results of this cooperative venture, the Taro and Hiluxmodels, go into production in the Hanover plant.

1987July 2Klaus Liesen becomes Chairman of the Supervisory Board of Volkswagen AG.

1987The readers of the Auto. Motor. Sport. specialist journal vote the Golf thebest car in the lower mid-class segment, with the vehicle winning over 60percent of votes.

1987DecemberProduction of the third generation of the Passat sedan begins. The newPassat Variant goes into production three months later and maintains itsposition as one of the most popular family cars. Starting at the end of 1991both models are also built by Volkswagen Bratislava.



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1987Both two-seater delivery vans, the Gol Pickup and Gol Van, begin leaving theassembly line at Volkswagen do Brasil. 15,304 of these two light commercialvehicles are sold in 1987.

1987We must have been doing something right.

Agency: Doyle Dane BernbachCreative Director: Michael BorchArt Director: Gnther Bauregger

Texter: Michael BorchPhotographer: Michael Pintado

1987Die neueste Form der Verfhrung. (The newest temptation.)


1988JanuaryThe Corrado sport coup with 160 horsepower goes into standard productionand replaces the Scirocco in 1992.

1988Volkswagen launches a veritable sports car with the Corrado. The vehicle,positioned above the Scirocco in the product range, enters the 50,000 DMprice segment in the sports car category. A 1.8-liter, four-cylinder enginecombined with the G60 compressor give the vehicle a power output of 160hp and enormous sprint capability.

1988Chairman Dr. Carl H. Hahn refers to a proud day for Volkswagen when the

ten millionth Golf leaves the assembly line on June 8. Since series productionbegan in 1974, the successor to the Beetle has quickly become the mostpopular car in Germany. In Europe, the Golf has dominated new registrationstatistics uninterrupted for years. In 1986, the successful model is built atthe Wolfsburg, Brussels, Puebla (Mexico), Uitenhage (South Africa),Westmoreland (USA) and Sarajevo (Yugoslavia) plants at a rate of approx.4,300 vehicles per working day. In 1987, its share in Group production was32.8 percent.



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1988JulyFollowing sustained high financial losses, capacity underutilization in theUSA forces the closing of the Westmoreland plant, which is sold to theCommonwealth of Pennsylvania in October 1990. The Mexican plant inPuebla is expanded and modernized to produce the Golf and Jetta for the USmarket. By the mid-90s, the site has developed into a low-cost productionlocation for exports to the United States which, together with Canada andMexico, formed a free trade zone in 1994.

1988Volkswagen adds a true thoroughbred to its stable in the shape of the GolfGTI 16 V with its four-cylinder, 16-valve direct injection engine and a poweroutput of 129 hp. The design closely resembles the series sedan, and onlythe lowered chassis and the wider fenders are the unmistakable hallmarks ofthe very sporty character of the GTI.

1988August 24Volkswagen signs a preliminary agreement with the Chinese automobilemanufacturer First Automobile Works in Changchun regarding the licensedproduction of the Audi 100.

1988August 31Volkswagen supplies plants for the production of the four-stroke gasolineengine to the VEB IFA-Kombinat Personenkraftwagen in Chemnitz (then

Karl-Marx-Stadt in the German Democratic Republic) and receives units inturn from the engine factory.

1988Volkswagen systematically pursues the implementation of new keytechnologies for the ongoing optimization of production facilities: CAD(Computer Aided Design), CAM (Computer Aided Manufacturing) and CIM(Computer Integrated Manufacturing) are just as much an integral part ofthe vehicle development and production process at the various sites as arethe 2,626 industrial robots on the assembly lines. Apart from raisingproductivity, these new technologies also enhance flexibility during programand type changeovers.

1988Volkswagen of South Africa also benefits from the South African economysnoticeable recovery. Deliveries by the subsidiary increase 24.7 percent to58,901 units during this financial year, with a 14.8 percent year-on-yearincrease in passenger car registrations. The workforce increases by 16.4percent to just under 8,000.



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1988During this model year, Volkswagen adds the Golf Tour to its mostsuccessful model series. The 1.8-liter, 90 hp five-door model with acomfortable interior is available in a choice of four metallic finishes, anenergy-efficient five-speed manual gearbox or automatic transmission and isideal for long excursions.

1988Der 10-Millionen-Golf. (The 10 million Golf.)


1988Bis da der TV Euch scheidet. (Till MOT do us part.)Agency: Doyle Dane Bernbach

1989Volkswagen is one of the first automakers to offer diesel engines with acatalytic converter. An exhaust turbocharger feeds additional air into thecylinders without raising the quantity of fuel injected. In fact, fuelconsumption is slightly reduced and performance slightly increased, thusenhancing efficiency and lowering the environmental impact. From now on,the new catalytic converter is fitted as standard in Golf and Jetta dieselengines.

1989Series production of the Taro gets underway at the Hanover plant on January10. The Group closes a gap in the expanding one-tonne payload segmentwith the market launch of this pickup, which is a technical cooperationbetween Volkswagen und Toyota.

1989Automotive spring: the Chinese market is growing and the VolkswagenGroups far-sighted commitment is paying off. While 8,471 Santana were

produced in 1986, the number leaving the assembly line in Shanghai hadgrown to 15,688 by 1989.

1989Another milestone for the Volkswagen plant in Wolfsburg as the 25 millionthVolkswagen a silver grey Golf with catalytic converter leaves theassembly line on July 4. Apart from the Beetle, the plant has to date alsobuilt the Transporter, Kurierwagen, VW 1500, VW 411, Audi 50, Audi 80,Audi 100, Passat, Golf, Scirocco, Polo, Jetta, Vento, Bora, Lupo, Touran and

Tiguan.



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1989Volkswagen presents the prototype of the Futura IRVW (IntegratedResearch Volkswagen) at the 53rd International Motor Show in Frankfurt.Volkswagen researchers use the prototype to demonstrate what technicalinnovations could be brought to series maturity over the next ten to 15years: spectacular features include the two gullwing doors and theremovable section at the rear. The 1.7-liter gasoline engine with innovative,very economical direct injection is revolutionary. Its all-wheel drivecapability and sensor-assisted parallel parking system activated at the touchof a button are unique.

1989The three hundred thousandth Volkswagen, a Golf, leaves the assembly linein Sarajevo on September 28. Total annual production of 35,459 vehiclesrepresented a 25 percent year-on-year rise and TAS consolidated its positionon the Yugoslavian automobile market, generating a profit this year.

1989October

The consulting company Volkswagen Asia Ltd., founded in Tokyo in 1983to assist sales of the Japanese Santana produced under license by Nissan, isreorganized under the name Volkswagen Audi Nippon K.K.. With theappointment of the first direct dealers in November 1990, Volkswagen startsorganizing its own distribution system in Japan.

1989Volkswagen presents a vehicle with economically-friendly drivetraintechnology in the shape of the Golf Eco, a cooperation project with the Stateof Lower Saxony. Based on the advanced turbo-diesel engine with a catalyticconverter and a newly-developed drive system control with automaticengine shut down and restart, the 1.6-liter, 44 kW Golf Eco uses 29 percentless fuel and emits up to 30 percent less pollutants than comparable modelswithout detracting from its driving performance.

1989DecemberImmediately after the opening of the internal German border, Volkswagenbegins to push forward into the East German market and takes advantage ofits long-term business relationship with the automobile industry in Saxony.

Together with the VEB IFA-Kombinat Personenkraftwagen in Chemnitz, itforms the planning company Volkswagen IFA-PKW GmbH in order toprepare for the development and production of internationally competitivevehicles. The first Polo is assembled in the former Trabant factory on May21, 1990 and production of the Golf begins in February 1991. With theprospect of increased demand, Volkswagen invests in the expansion of theproduction facilities in Mosel, Chemnitz and Eisenach.



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1989Braucht der Golf eigentlich noch Werbung? (Does the Golf still need to beadvertised?)


1989Der neue Corrado. So stellen wir uns einen Sportwagen vor. (The newCorrado. Our idea of a sportscar.)


1990The Volkswagen Group restructures its transport business by forming V.A.G

Transport GmbH & Co. OHG, which now takes over functions previouslycarried out by Volkswagen AG, Audi AG and V.A.G Transport GmbH.Volkswagen has an 81 percent interest in the company and Audi has 19percent. V.A.G Transport GmbH carries out management responsibilities.

1990Volkswagen presents the Fire and Ice special series, a sporty andexclusive version of the Golf of superior comfort developed in cooperationwith fashion designer and director Willy Bogner. With its extravagant opticaleffects dark violet pearl effect paintwork, alloy wheel rims, front spoilerand various wide body features, plus an engine range from 90 to 160 hp, theGolf Fire and Ice, and in particular the GTI version, soon became a muchcoveted collectors item.

1990Planned and prepared by Volkswagen IFA-PKW GmbH, the IFA plant in Moselnear Zwickau makes the production transition successfully. On May 21,1990, the era of the planned economy comes to an end as Trabantproduction ceases, making way for the Polo, a forward-looking product thatlays the foundation for economic growth and secure jobs in Saxony.

1990June 4The fourth Transporter generation goes into series production with a newtechnical concept and design: its short flat bonnet houses a front enginemounted lengthways for a front-wheel drive. Its new design means the T4can be supplied with two wheelbases, in two lengths and in three weightclasses and can be assembled entirely according to the modular system. Asproduction begins, the Hanover site puts a new manufacturing unit intooperation which has both health and environmental benefits. The automatedinstallation of axles, engines and gears makes overhead work effectivelyobsolete, and in the new highly automated paint shop opened in 1988chemical solvents are for the most part replaced by water-based products.After the launching of the Volkswagen Nutzfahrzeuge (CommercialVehicles) brand in November 1995, Hanover becomes the leading plant ofan independently operating unit within the Group.



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1990June 14The renaming of the V.A.G Kredit Bank GmbH into V.A.G Bank GmbHsignals the move into the direct banking business, which takes its place nextto the classic dealership and customer financing activities. Starting inNovember 1990, it offers in conjunction with the Volkswagen/Audi CardSystem for the first time in Germany both leading credit cards, EUROCARDand VISA, in a single package. The product portfolio of Volkswagensfinancial services subsidiary, which is renamed Volkswagen Bank GmbHon December 14, 1994, is successively expanded to include products suchas installment plans for external customers and AutoCredit, which wasintroduced in 1995. The low monthly payment plan carries the option ofreturning the vehicle at the end of the contract period, making the finalpayment under the contract or renewing financing. In 1999, VolkswagenBank expands its operations even further by providing mortgages andinvestment fund services.

1990

June 26Klaus Volkert is elected Chairman of the General and Group Works Council.

1990August 31

The Volkswagen Group sets up a European Works Council, which is made upof employee representatives from Volkswagen AG, Audi AG, Seat S.A. andVolkswagen Bruxelles S.A. The contract between the employeerepresentatives and the Groups management is signed on February 7,1992. The European Works Council is an innovation in the automobileindustry.

1990The Volkswagen Polo starts the new model year with upgraded visual

features and optimized aerodynamics. After a comprehensive facelift the cdvalue of both the sporty coupe and the practical hatchback version has beenimproved by ten percent, giving the compact two-door model considerablyenhanced dynamics and elegance. The latest outfit includes new door andside trims, more powerful front and rear bumpers, square headlights andmodified rear lights. The facelift brings a fresh design to the interior of theFox, CL and GT equipment lines with new steering wheel and dashboardfeatures. Volkswagen puts the Polo G40 with its genuine GTI feeling, whichhas a power output of 113 hp thanks to its G40 charger and had previouslyhit the headlines primarily in motorsport, at the top of the range.



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1990December 10

The Czech government awards Volkswagen AG the rights to acquire 100percent of koda, automobilov a.s., an automobile manufacturer rich intradition which provides Volkswagen with excellent access to the automobilemarkets in central and Eastern Europe. koda, which is located in MladBoleslav, has a highly qualified workforce and a yearly capacity of 190,000vehicles. On April 16, 1991, it joins the Volkswagen Group as its fourthindependent brand.

1990December 12

To establish an efficient production location in the eastern part of Germany,Volkswagen IFA-PKW GmbH becomes Volkswagen Sachsen GmbH. Thecompany is responsible for expanding capacity in Mosel and takes overMotorenwerke Chemnitz GmbH and Zylinderkopffertigung EisenachGmbH in 1991/92, subsequently sold in 1996 following commissioning of anew 4-valve cylinder head production line in Chemnitz. Until the new

production plant is completed, Schsische Automobilbau GmbH (SAB), setup by Volkswagen and the Treuhandanstalt on December 19, 1990assembles the Polo and the Golf at the old Mosel plant. In June 1994,Volkswagen AG, which had held managerial responsibility for the companyfrom the beginning, officially acquires SAB. The merger of VolkswagenSachsen with SAB is completed on August 15, 1998 and the enterprise isrenamed Volkswagen Sachsen GmbH. At the end of the year, the companyhas a workforce of 6,700.

1990In aller Bescheidenheit. (In all modesty.)


1990Qualitt kommt von Qual. (Quality doesnt come easy.)




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1991January 1The organizational structure of the Volkswagen Group is adapted to reflectthe brand alliance. New brand management boards, whose chairmen areintegrated in the Group management body, are responsible for day-to-dayoperations at the four brands of Volkswagen, Audi, Seat and koda.

1991February 6Volkswagen AG acquires a second base in China. FAW-VolkswagenAutomotive Company, Ltd. is formed in Changchun, a joint venture thatgrew out of the cooperation with the FAW-Volkswagen AutomotiveCompany, Ltd. after 1988. Volkswagen AG has a 40 percent interest in thenew firm, with which the Group intends to improve its position in China andensure an economic production base in Asia. The Jetta is initially assembledfrom imported parts, but starting at the end of 1994 a newly constructedplant with an annual capacity of 150,000 vehicles begins producing themodel. Two years later, transmission and engine production goes intooperation, supplying the Group within China and also exporting to Germany.

1991In the course of streamlining its overseas operations, the Volkswagen Groupbrings together its production and sales activities by combining the sites in

the United States, Canada and Mexico to form the North American Region(NAR). As in 1993, when the South America/Africa Region was formed,regional management carries out day-to-day operations, while the relevantboard members are responsible for reorganization and the strategiccoordination of the regions.

1991

Volkswagen restructures its financial services and combines them to form asingle firm, Volkswagen Finanz GmbH. The amalgamation of the leasingand banking business lies at the core of this reorganization, which is aimedat achieving synergy in external services. The capital of both companies istransferred to Volkswagen Finanz GmbH, which now assumes allresponsibilities previously undertaken by V.A.G Leasing GmbH as well as thesales and marketing activities of V.A.G Bank. The Volkswagen Group hasbecome Europes leading provider of financial services which generate 25percent of the Groups total income.



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1991Having taken less than two years to build, Volkswagen inaugurates a newtraining center in Emden. From now on, all site-related qualificationmeasures are held on over 10,000 spare meters at the training center. Theplant training concept includes soft and social skills as well asapprenticeships and advanced vocational training. In 1991, Emden planttrains industrial mechanics specializing in production technology andmachine/system technology, production technology industrial electricians,management engineering technicians, office clerks, office communicationclerks, social insurance clerks and cooks.

1991May 30Volkswagen AG put the finishing touches to its involvement in the Czech andSlovak Federal Republic. An agreement concerning cooperation with theautomobile manufacturer Bratislavsk Automobilov Zvodi concludedwith the Slovakian government on March 12, 1991 leads to theestablishment of Volkswagen Bratislava, spol. s. r. o.. Volkswagen takesover the production complex with a fully developed infrastructure and startsproducing Passat models there in December 1991. Sole production of theGolf syncro is transferred to Volkswagen Bratislava in 1995 followingexpansion of production capacity and construction of a gearbox plant. Withthe start-up of Golf 4 production in 1997, volumes triple in the following yearto 125,281 units; the workforce increases to 5,250. On January 1, 1999 theSlovakian subsidiary merges with Volkswagen Slovakia, a.s. established onDecember 7, 1998. Once capacity has been expanded yet again, seriesproduction of the Touareg begins there in August 2002.

1991June 24Volkswagen AG and the Ford Motor Company enter into a capital and risksharing joint venture in Portugal. In Setubal they establish AutoEuropaAutomveis Lda. in order to carry out a product concept designedespecially for the European market, which was developed underVolkswagens overall control. After a 3-year development period, productionof the Volkswagen Sharan begins in the Palmela plant in April 1995.Volkswagen acquires Fords shares in the Portuguese company, whichproduces the Seat Alhambra and Ford Galaxy, in January 1991.

1991JulyVolkswagen starts production of the third Golf generation with a morerounded design. The flowing lines make the car body appear more dynamic,the silhouette more elegant. The new Golf sets higher safety standards. Withside protection, reinforced door sills, an additional safety traverse below thedashboard and mash seam welding on the chassis rails it even complies withproposed crash test specifications that have not yet come into effect. TheGolf 3 also sets new, pioneering environmental standards in terms ofrecycling. Environmentally harmful materials have been banned from theproduction process: nearly all plastic components in the Golf are recyclable.

The economical and low-emission engines, from the 1.4 liter, 60 hpentry-level engine to the 2.0 liter, 115 hp version, protect the environmentand save resources.



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1991Salzgitter experiences the onset of the TDI era. The first turbo diesel withdirect injection and 1.9 liters and 66 kW goes into production. The engine isfirst used for the Audi 80 and then for the Passat.

1991NovemberProduction of the Vento begins in Mexico and South Africa. This visually andtechnically redesigned model takes the place of the Jetta.

1991The six-cylinder engine makes its debut in the Passat and Golf. Thecombination of in-line six-cylinder and V-engine in the Golf VR6 generates apowerful 174 hp at 2.8-liter cubic capacity and accelerates the firstsix-cylinder in the compact class from zero to one hundred kilometers perhour in 7.8 seconds. The design and equipment of the Golf VR6 also reflectthe vehicles sporty character and dynamics, as demonstrated by featuressuch as a lowered chassis, wider wings and sills, twin exhaust or the front

spoiler. The standard safety package in the VR6 models includes anelectronically-controlled anti-blocking system (ABS), an additional reinforcedsection to enhance side collision safety and an electronic differential lock afirst for front-wheel drive vehicles.

1991GTI. Denn jede Generation braucht Vorbilder. (GTI. Every generationneeds role models.)


1991Der neue Polo. Da mchte man gar nicht mehr aussteigen. (The newPolo. Cant stand to leave it.)




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1991Golf with a return guarantee.

Documents

Volkswagen Chronik 1982 1991