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#1 ·
“While Volkswagen's range of cars soon became similar to that of other large European automakers, the Golf has been the mainstay of the Volkswagen lineup since its introduction, and the mechanical basis for several other cars of the company. There have been five generations of the Volkswagen Golf, the first of which was produced from the summer of 1974 until the end of 1983, sold as the Rabbit in the United States and Canada and as the Caribe in Latin America. Its chassis also spawned the Scirocco sport coupe, Jetta sedan, Cabriolet convertible, and Caddy pickup. North American production of the Rabbit commenced at a factory in New Stanton, Pennsylvania in 1978. The production numbers of the first-generation Golf has continued to grow annually in South Africa with only slight modifications to the interior, engine and chassis. It would be produced in the United States as the Rabbit until the spring of 1984. The second-generation Golf hatchback/Jetta sedan ran from late 1983 to late 1991, and a North American version produced in Pennsylvania went on sale at the start of the 1985 model year.

In the 1980s, Volkswagen's sales in the United States and Canada fell dramatically, despite the success of models like the Golf elsewhere. The problems had stemmed from the Rabbit, which had developed a reputation for bad electrical systems and oil burning. The Japanese and the Americans were able to compete with similar products at lower prices. Sales in the United States were 293,595 in 1980, but by 1984 they were down to 177,709. The introduction of the second-generation Golf, GTI and Jetta models helped Volkswagen briefly in North America. Motor Trend named the GTI its Car of the Year for 1985, and Volkswagen rose in the J.D.

Power buyer satisfaction ratings to eighth place in 1985, up from 22nd a year earlier. VW's American sales broke 200,000 in 1985 and 1986 before resuming the downward trend from earlier in the decade. Chairman Carl Hahn decided to expand the company elsewhere, and the New Stanton, Pennsylvania factory closed on July 14, 1988. Meanwhile, Hahn expanded the company by purchasing a greater share of the Spanish car maker SEAT, which VW bought outright in 1990; the Czech car maker Skoda was acquired the following year.

Volkswagen had entered the supermini market in 1976 with the Polo, a stylish and spacious three-door hatchback designed by Bertone. It was a strong seller in West Germany and most of the rest of Western Europe, being one of the first foreign small cars to prove popular in Britain. The second generation model, launched in 1981 and sold as a hatchback and "coupe" (with the hatchback resembling a small estate car and the coupe being similar to a conventional hatchback), was an even greater success for Volkswagen. It was facelifted in 1990 and was still selling well after 13 years, when it was replaced by the third generation Polo in 1994.”
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