1991–99: Moving upmarket

In 1991, Volkswagen launched the third-generation Golf, which was European Car of the Year for 1992. The Golf Mk3 and Jetta arrived in North America just before the start of 1994 model year, first appearing in southern California in the late spring of 1993. The sedan version of the Golf was badged Vento in Europe, but remained Jetta in the U.s

The late 1990s saw a gradual change in perception of the company’s products – with Audi having elevated itself into the same league as BMW and Mercedes-Benz,[ Volkswagen moved upmarket to fill the void left by Audi; with SEAT and the further addition of the Czech car maker Škoda being acquired in the late 1990s, now occupying what was once VW’s core market.

This move upmarket was continued with the Golf Mk4, introduced at the end of 1997 (and in North America in 1999), its chassis spawned a host of other cars within the Volkswagen Group—the Volkswagen Bora (the sedan called Jetta in the U.S.), New Beetle, SEAT Toledo, SEAT León, Audi A3, Audi TT, and Škoda Octavia.

The other main models have been the Polo, a smaller car than the Golf, and the larger Passat for the segment above the Golf. The Scirocco and the later Corrado were both Golf-based coupés.

In 1994, Volkswagen unveiled the J Mays-designed Concept One, a “retro”-themed concept car with a resemblance to the original Beetle, based on the platform of the Polo. Due to a positive response to the concept, a production version was developed as the New Beetle, based on the Golf’s larger platform.

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Volkswagen’s fortunes in North America improved once the third-generation Golf and Jetta models became available there. Marketing efforts included Trek bicycles with accompanying bicycle racks on the 1996 Jetta sedan. The introductions of the New Beetle and the fifth-generation Passat were a major boost to the brand.[citation needed]

In the UK, Volkswagen’s market share grew throughout the 1990s. In 1990, the Golf was Britain’s 12th most popular car with nearly 50,000 units sold. The Mk3 Polo achieved similar success in the mid-1990s, but in 1999 the Mk4 Golf was Volkswagen’s first ever entrant in Britain’s top 10 list of most popular new cars.

In the late 1990s Volkswagen, under CEO Ferdinand Piëch, acquired the three luxury brands Lamborghini (through Audi), Bentley/Rolls-Royce, and Bugatti. Audi’s plans for Lamborghini included a small supercar later to be named the Gallardo, and a new halo vehicle, the Murciélago, and later the Reventon limited edition halo car. In late 2008, a 4-door saloon for the Lamborghini brand was shown in the form of the Lamborghini Estoque concept

Shortly after its takeover in 1998, Volkswagen was forced to relinquish control of the Rolls-Royce brand after a conflict of interest with BMW who supplied the British company with engines. A compromise was reached where the Volkswagen Group would retain R-R’s sister brand Bentley and the Crewe factory, while BMW re-established a new Rolls-Royce motor company. For Bentley, its future within the Volkswagen Group seemed bright as a massive injection of investment into both the Crewe factory and new models culminated in the launch of the Bentley Continental range, which helped Bentley post record-breaking sales of 10,000.

Bugatti, after Volkswagen purchased the rights to use the name, showed three concept cars, the Bugatti EB110 (coupé and saloon) and the Bugatti Chiron. Bugatti then launched the Veyron, with a top speed of 252 mph (406 km/h).

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