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They envisioned buying several car companies to round out their offerings. In the following years, Volkswagen AG re-thought their future strategy. In the early 1970's, the dealer organizations of Volkswagen and Audi merged. The main brand of Auto Union was Audi. The typeface was conceived in a general overhaul of Volkswagen's corporate identity.In 1964, Volkswagen AG bought Auto Union GmbH from Daimler Benz.
Volkswagen at the time had Futura as their typeface. Finding a distinct typeface was an integral part. Eventually, Volkswagen intended to use this umbrella as the name of their holding company: General Motors in reverse.GGK Düsseldorf, was tasked with the branding concept. The new dealer organization, financial services, and all other non-car related activities were to come under one branded umbrella.
The original idea was conceived by Wolf Rogosky (creative director) and Gerd Hiepler (art director). A rounded typeface did not exist at the time, it had to be developed. The new typeface should not be sans serif as the Futura, and it should not be serif as the Times.
Bertel Schmitt revealed that the V.A.G name was intentionally ambiguous to avoid rewriting dealer contracts as a legal consequence of the holding company's name change. Theories ranged from "Volkswagen AG" (although the official name of the company during this time was "Volkswagenwerk AG") to "Volkswagen Audi Group." At Volkswagen, insiders joked that V.A.G means Von Adolf Gegründet ("Founded by Adolf"). It was then perfected on a PDP-8 minicomputer.The meaning of V.A.G was never officially disclosed. The original typeface was rendered by hand.
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