Thus began the history of the VW Beetle, arguably the most famous car in history.
The big question was the engine to be used and the placement of the engine, and in 1935 an Austrial engineer came up with a design for a flat four engine, Porshe having previously decided that the engine should be rear mounted. This engine was an air cooled engine, and was cheap to build, and this engine powered hundreds of thousands of beetles for the next 40 years.