From Beetle to Golf: Volkswagen's 89-Year Hot Hatch Legacy Lives On

Volkswagen Through the Lens of Golf GTI's 50th Anniversary · Golf's Cumulative Sales Reach 37 Million Units · A Defining Model That Set New Standards for Compact Cars · Vehicles Produced in 12 Countries, Brand Prestige Intact · VW Group, Home to Audi, Bentley and Porsche, Sells 8.98 Million Units as World's No. 2 Automaker

Finance|
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By Yoo Min-hwan
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null - Seoul Economic Daily Finance News from South Korea

Volkswagen's high-performance hatchback, the Golf GTI, marks its 50th anniversary this year. Following the Golf itself, which celebrated its half-century milestone last year, another model has survived five decades of automotive history.

Volkswagen's story begins with the Beetle in 1938. Dr. Ferdinand Porsche, founder of Porsche and designer of the Volkswagen, set out to develop a car for the German people and created the Beetle. Before its discontinuation, the Beetle sold approximately 23 million units across 91 countries over 81 years, laying the foundation for Volkswagen.

If the Beetle announced Volkswagen's beginning, the Golf is the iconic model that drove the brand's global leap. Since its launch in 1974, the Golf has gone through eight generations and recorded cumulative sales of 37 million units. It is widely regarded as the model that pioneered the hatchback market and set new standards for compact cars.

The Golf GTI took things a step further. While the Golf served as a practical and economical daily driver, the GTI was built for driving pleasure. At a time when most compact cars could not exceed a top speed of 150 km/h, the Golf GTI reached 182 km/h and delivered 110 horsepower. Combined with its signature red stripe across the front grille and checkered seats, it earned the nickname "hot hatch."

Today's Golf GTI is equipped with a 2.0 TSI engine producing 245 horsepower and maximum torque of 37.7 kg·m. Press the accelerator and it surges forward instantly. Its grip is equally impressive, hugging the road through corners with remarkable stability. This is thanks to the 15-stage Adaptive Chassis Control (DCC), which electronically adjusts suspension damping on the fly according to road conditions.

The car also features the cutting-edge driver assistance system package "IQ.Drive," offering a wide range of safety features including a front collision warning system, rear traffic alert and exit warning system.

Beyond the Golf, Volkswagen has produced other key models including the midsize sedan Passat, the full-size SUV Touareg and the midsize SUV Tiguan. The Passat, introduced in 1975, has also gone through eight generations and sold more than 31 million units worldwide.

The Touareg, launched in 2002, was Volkswagen's first SUV. The first-generation Touareg, co-developed with the Porsche Cayenne, drew attention for its powerful capability — strong enough to tow a Boeing 747. The second-generation Touareg entered the Dakar Rally, known as the "rally from hell," and won three consecutive titles starting from its debut year in 2009. The Tiguan, Volkswagen's second SUV following the Touareg, quickly became a bestseller and now serves alongside the Golf as a twin pillar driving the brand's sales.

Volkswagen has recently focused on expanding its SUV lineup, introducing models such as the compact SUV T-Roc and the full-size SUV Atlas. SUV models account for 50.2% of the brand's total sales. The flagship models of its electric vehicle series — the ID.3, ID.4 and ID.5 — are also SUVs. In Korea, two hatchback models including the Golf and Golf GTI are sold alongside four SUVs: the Touareg, Atlas, ID.4 and ID.5. Sedan models such as the Passat, the compact Jetta and the full-size Phaeton were previously available in Korea but are no longer imported.

Volkswagen's sales in Korea have declined compared to earlier years. Annual sales, which reached 17,615 units in 2020, fell to 5,125 units last year. The brand's image suffered from the "Dieselgate" scandal that erupted in 2016, and the introduction of new models — limited to just one or two per year — has lagged behind competitors. Volkswagen Korea plans to expand its market share this year, centering on the Atlas, which was newly launched last year.

Although domestic performance has slowed, Volkswagen's global standing remains strong. With 89 years of history, the company produces vehicles at more than 28 sites across 12 countries and employs approximately 170,000 people. It recorded global sales of 4.73 million units last year. In its home market of Germany, Volkswagen maintained the top position with a 19.6% market share.

The transition to electrification is also proceeding steadily. Starting with the pure electric "e-Up" in 2013, Volkswagen has been expanding its lineup through the ID. series. The company delivered 382,000 electric vehicles worldwide last year. The ID.7, a near-full-size sedan introduced in 2024, has emerged as a bestselling model in Europe, where 76,000 units were sold in that region alone.

The Volkswagen Group, to which the Volkswagen brand belongs, is well known as the world's second-largest automaker by sales after the Toyota Group. Last year, the Toyota Group recorded global sales of 11.32 million units, while the Volkswagen Group sold 8.98 million units. Hyundai Motor (005380.KS) Group ranked third with 7.27 million units.

The Volkswagen Group houses a roster of prestigious brands including Audi, Porsche, Lamborghini, Bentley, Ducati and Skoda.

However, the group's financial performance was somewhat sluggish last year, with operating profit falling 54% year-on-year to 8.9 billion euros (approximately 15.5 trillion won, or $11.4 billion). It was overtaken by Hyundai Motor Group, which posted 20.546 trillion won in operating profit — a bruising blow to its pride. U.S. tariffs and struggles in the Chinese market are cited as the main causes. In China, the group delivered 2.69 million vehicles and maintained its position as the top foreign automaker, but sales declined 8.0% year-on-year under pressure from Chinese competitors.

Volkswagen aims to recover this year by launching more than 20 electric vehicles, plug-in hybrids (PHEVs) and extended-range electric vehicles (EREVs) in the Chinese market. Having reached a cumulative milestone of 4 million pure electric vehicle deliveries last year, the company plans to expand its lineup further and pursue an aggressive electrification push this year.

Original reporting by Yoo Min-hwan for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

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