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  • The systematic expansion of the export business during the first half of the 1950s was not entirely free of trouble and risk, however. Investments were at first only rewarded with narrow profit margins, because Volkswagen’s price calculations had to take into consideration the establishment of its products on international markets, and so the company exported its products at close to cost. In addition, the establishment of a production site in Brazil ran into difficulties because of political and economic instability. Problems were also encountered when a sales organisation for the US market was set up. Top American dealers were already tied to exclusive contracts with domestic manufacturers, and the standard 30 percent trade discount made competitive pricing difficult. - Source: Internet
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