ABSTRACT

When Volkswagen developed the Beetle in the 1930s, it defined a price target of 990 Reichsmark. The reason for this price limit was the scarcity of foreign currencies required to pay for the parts and licences from abroad. Moreover, it was a price at which the car should be affordable for many people. In order to meet the price limit, Volkswagen examined alternative technical solutions for the various components of the car. As a result, the Beetle was not built with hydraulic brakes but with simpler cable brakes because this led to a cost saving of 25 Reichsmark (Franz, 1993).