In occupied Germany, the Allies followed the Morgenthau plan to remove all German war potential by complete or partial pastoralization.
As part of this, in the Industrial plans for Germany, the rules for which industry Germany was to be allowed to retain were set out.
German car production was set at a maximum of 10 percent of the 1936 car production numbers.

Mass production of civilian VW cars did not start until post-war occupation.
The Volkswagen factory was handed over by the Americans to British control in 1945; it was to be dismantled and shipped to Britain.
However, no British car manufacturer was interested in the factory; an official report included the phrases "the vehicle does not meet the fundamental technical requirement of a motor-car… it is quite unattractive to the average buyer…  To build the car commercially would be a completely uneconomic enterprise."
The factory survived by producing cars for the British Army instead.
Allied dismantling policy changed in late 1946 to mid-1947, although heavy industry continued to be dismantled until 1951.
In March 1947, Herbert Hoover helped change policy by stating
There is the illusion that the New Germany left after the annexations can be reduced to a "pastoral state".
It cannot be done unless we exterminate or move 25,000,000 people out of it.

The re-opening of the factory is largely accredited to British Army officer Major Ivan Hirst.
Hirst was ordered to take control of the heavily bombed factory, which the Americans had captured.
His first task was to remove an unexploded bomb that had fallen through the roof and lodged itself between some pieces of irreplaceable production equipment; if the bomb had exploded, the Beetle's fate would have been sealed.
Knowing Germany needed jobs and the British Army needed vehicles, Hirst persuaded the British military to order 20,000 cars, and by March 1946 the factory was producing 1,000 cars a month (in Army khaki, under the name Volkswagen Type 1), which Hirst said "was the limit set by the availability of materials".
During this period, the car reverted to its original name of Volkswagen and the town was renamed Wolfsburg.
 The first 1,785 Type 1s were made in 1945.

After initially building mostly Beetles for the British military, in 1947 production transitioned to purely civilian Beetles, for the first time featuring chromed bumpers, hubcaps, and body and running board trim.
Aside from some remaining military production, civilian output reached almost 9,000 units in 1947, and for 1948 total production increased to 19,244 cars.
The late 1940s Beetles still had an understressed 1131 cc engine with just 25 horsepower, but it could effortlessly maintain cruising at the car's 60-mile-per-hour (97 km/h) top speed.

Following the British Army-led restart of production and Hirst's establishment of sales network and exports to Netherlands, former Opel manager (and formerly a detractor of the Volkswagen) Heinz Nordhoff was appointed director of the Volkswagen factory in 1949.
Under Nordhoff, production increased dramatically over the following decade, with the one-millionth car coming off the assembly line by 1955.
During this post-war period, the Beetle had superior performance in its category with a top speed of 115 km/h (71 mph) and 0–10 kilometres per hour (0.0–6.2 mph) in 27.5 seconds with fuel consumption of 6.7 litres per 100 kilometres (42 mpg‑imp; 35 mpg‑US) for the standard 25 kW (34 hp) engine.
This was far superior to the Citroën 2CV, which was aimed at a low speed/poor road rural peasant market, and Morris Minor, designed for a market with no motorways or freeways; it was even competitive with more advanced small city cars like the Austin Mini.

In Small Wonder, Walter Henry Nelson wrote:
The engine fires up immediately without a choke.
It has tolerable road-handling and is economical to maintain.
Although a small car, the engine has great elasticity and gave the feeling of better output than its small nominal size.

There were other, less-numerous models, as well.
The Hebmüller cabriolet (officially Type 14A), a sporty
In occupied Germany, the Allies followed the Morgenthau plan to remove all German war potential by complete or partial pastoralization. As part of this, in the Industrial plans for Germany, the rules for which industry Germany was to be allowed to retain were set out. German car production was set at a maximum of 10 percent of the 1936 car production numbers.
Mass production of civilian VW cars did not start until post-war occupation. The Volkswagen factory was handed over by the Americans to British control in 1945; it was to be dismantled and shipped to Britain. However, no British car manufacturer was interested in the factory; an official report included the phrases "the vehicle does not meet the fundamental technical requirement of a motor-car… it is quite unattractive to the average buyer…  To build the car commercially would be a completely uneconomic enterprise." The factory survived by producing cars for the British Army instead. Allied dismantling policy changed in late 1946 to mid-1947, although heavy industry continued to be dismantled until 1951. In March 1947, Herbert Hoover helped change policy by stating
There is the illusion that the New Germany left after the annexations can be reduced to a "pastoral state". It cannot be done unless we exterminate or move 25,000,000 people out of it.
The re-opening of the factory is largely accredited to British Army officer Major Ivan Hirst. Hirst was ordered to take control of the heavily bombed factory, which the Americans had captured. His first task was to remove an unexploded bomb that had fallen through the roof and lodged itself between some pieces of irreplaceable production equipment; if the bomb had exploded, the Beetle's fate would have been sealed. Knowing Germany needed jobs and the British Army needed vehicles, Hirst persuaded the British military to order 20,000 cars, and by March 1946 the factory was producing 1,000 cars a month (in Army khaki, under the name Volkswagen Type 1), which Hirst said "was the limit set by the availability of materials". During this period, the car reverted to its original name of Volkswagen and the town was renamed Wolfsburg.  The first 1,785 Type 1s were made in 1945.
After initially building mostly Beetles for the British military, in 1947 production transitioned to purely civilian Beetles, for the first time featuring chromed bumpers, hubcaps, and body and running board trim. Aside from some remaining military production, civilian output reached almost 9,000 units in 1947, and for 1948 total production increased to 19,244 cars. The late 1940s Beetles still had an understressed 1131 cc engine with just 25 horsepower, but it could effortlessly maintain cruising at the car's 60-mile-per-hour (97 km/h) top speed.
Following the British Army-led restart of production and Hirst's establishment of sales network and exports to Netherlands, former Opel manager (and formerly a detractor of the Volkswagen) Heinz Nordhoff was appointed director of the Volkswagen factory in 1949. Under Nordhoff, production increased dramatically over the following decade, with the one-millionth car coming off the assembly line by 1955. During this post-war period, the Beetle had superior performance in its category with a top speed of 115 km/h (71 mph) and 0–10 kilometres per hour (0.0–6.2 mph) in 27.5 seconds with fuel consumption of 6.7 litres per 100 kilometres (42 mpg‑imp; 35 mpg‑US) for the standard 25 kW (34 hp) engine. This was far superior to the Citroën 2CV, which was aimed at a low speed/poor road rural peasant market, and Morris Minor, designed for a market with no motorways or freeways; it was even competitive with more advanced small city cars like the Austin Mini.
In Small Wonder, Walter Henry Nelson wrote:
The engine fires up immediately without a choke. It has tolerable road-handling and is economical to maintain. Although a small car, the engine has great elasticity and gave the feeling of better output than its small nominal size.
There were other, less-numerous models, as well. The Hebmüller cabriolet (officially Type 14A), a sporty 
Volkswagen Beetle