By 1932 his idea would come to form in the shape of the VW, seen here in an early sketch.  Conceived as a car for every man, Porsche first approached motorcycle makers, since auto makers were reluctant in the fear that mass produced vehicles in Germany would lower prices.  Zundapp and NSU backed out of the project, though only after prototypes made for both of the companies allowed for important design improvements, such as the switch to an air cooled engine, based on an earlier Porsche airplane design. 

    On January 17, 1934, less than a year after Hitler took power, Porsche presented his plan for a people's car to the Reich, believing that the new road system being constructed to employ Germans after the depression was a sign of the increasing car readiness of the country  The regime. Porsche was given 10 months to create a prototype, working with the RDA (Reichsverband der Automobilindustrie),  which would have to meet 5 basic criteria. 
 
    1. Carry 2 adults and 3 children comfortably 
    2. Be able to cruise at 100 Kph (60 mph) on the Autobahn (Highway) 
    3. Have a reliable, air-cooled motor that could achieve 33 mpg 
    4. Be able to carry 3 soldiers and a machine gun 
    5. Cost under 1000 RM ($360) 

    Hitler, aware of delays in the prototype testing due to intervention by the RDA, had the board of directors executed and placed the project under state supervision.  By 1937 the car was ready to be announced to the public, and in a state of zeal at the opening ceremonies of the factory Hitler announced the name "Kraft durch Freude wagen" or "Power Through Joy car", subsequently nicknamed the KdF wagen.  This name infuriated Porsche, among others, for it's overt Fascist nature would prevent high export sales.  30 had been made and driven for 1.5 million test miles by the SS, proving the roadworthyness of the vehicle.   A late 37 restyling of the car by Reutter Coach works was the final design change before the production was to begin.  In 1938 the Gesellschaft Zur Vorberitung des Deutsche Volkswagens, ("GeZuVor" Group to Plan the German Peoples Car, Inc.) was created to oversee the production and marketing of the new vehicle.   On May 26, 1938 the Reich began building the KdF-Stadt, a factory on the American model to achieve the goal of 1 million vehicles a year.   A purchase plan was announced, where German citizens could purchase a minimum of 5 RM of stamps each week, working towards the purchase price of 990 RM without interest, beneficial to the German government for it amounted to an interest free loan for all involved.  A massive publicity campaign was launched, selling the inexpensive car as one for all Germans, with the New York Times picking up the story, republishing several publicity photos with the nickname "the Beetle". 
 
The New car would see very little civilian production, however, with the onset of the war. After the 1939 invasion of Poland, industry turned to the war effort.  KdF wagen production continued though out the war, with more than 60,000 being produced, yet only the military edition, the Kubelwagen.  The K-wagen, though similar to the KdF wagen cabriolet, had several changes necessitates by the war, such as a raised suspension and flat surfaces, the cost of rounded metal being too great.  In addition, an aquatic edition of the Kubelwagen, or Schwimmwagen, were produced for amphibious assault, and were popular after the war with outdoorsmen and hunters.  Many other wartime variations abounded, with the introduction of alternative fuel vehicles, running on butane, natural gas, or even wood, by the end of the war, necessitated by widespread fuel shortages. 
  
 
     At the end of the war, the KdF stadt ended up in British occupied territory, still stocked with parts for civilian KdF wagens left over from before the war.  Major Ivan Hirst was placed in charge of the factory, employing 9,000 workers in a town of only 17,000, and two thirds destroyed by bombing raids at the end of the war.  The town was filling with refuges from all over eastern Germany.  The factory was initially put into production repairing British Jeeps, and making jeep engines, but 2 KdF wagens were produced by hand by out-of-work employee's, due to the large demand of British soldiers stationed there for motor vehicles.  After Hirst was appointed Mayor of the town, he changed the name to Wolfsburg, and the British, in order to begin receiving war reparations, placed an order for 20,000 Beetle's on September 17, 1945.  By years end more than 1,700 had been produced, their sale being used to recreate the German post office, red cross and other institutions.  Within a year 10,000 were made, selling for 5,000 RM a piece, though as of yet no civilians were allowed to purchase the car. 
  
     In 1948, the company, by now employing close to the wartime 9,000 again, was returned to the German government, and Heinrich Nordhoff was placed in control.  Nordhoff would go on to run the company for many years, and would oversee the move towards 1,000,000 yearly production, and the American market, that would dominate the 50s.