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From the Wikipedia Volkswagon Beetle article:
In 1933, Adolf Hitler gave the order to Ferdinand Porsche to develop a "Volks-Wagen" (literally, "people's car" in German, in which it is pronounced [ˈfolksvɑːgən]). Hitler required a basic vehicle capable of transporting two adults and three children at 100 km/h (62 mph). The "People's Car" would be available to citizens of the Third Reich through a savings scheme at 990 Reichsmark, about the price of a small motorcycle (an average income being around 32RM a week).[6]
Erwin Komenda, Porsche's chief designer, was responsible for the design and style of the car. But production only became worthwhile when finance was backed by the Third Reich. War started before large-scale production of the Volkswagen started, and manufacturing shifted to producing military vehicles. Production of civilian VW automobiles did not start until post-war occupation.
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