The car appealed to independent-minded people, often cen- tered in university-oriented locales, who frequently found themselves explaining why they bought a VW. But devotees rather enjoyed talk- ing about their cars-as fans usually do-taking pride in their ability to pay less without sacrificing quality. The U.S. car market changed in the 1970s, when Japanese auto- makers entered the market during the energy crunch with several low-priced, efficient, compact cars. Volkswagen was left going head- to-head against a new array of formidable competitors who seemed to steal the spotlight from the familiar Bug. Although VW kept upgrading the car, it was the collective foot- steps of its new competitors and its parent company that would eventually squash the Bug. Volkswagen decided to phase out the Bee- tle and replaced it with the Rabbit in 1975. The Rabbit was Beet- lesque in its quirky looks, fun colors, and great gas mileage, but the similarities basically stopped there. The Rabbit had many quality issues-from cold-start problems and noisiness to faulty electrical systems and high oil consumption-which would tarnish the repu- tation of the company. Quality problems, a lackluster array of cars (remember the Scirocco, the Dasher, and the Thing?), increased competition, and dissension within the company about strategic direction created a sales and image meltdown for VW. Managements slowness to correct the problems that plagued its U.S. operations became the "drug" that poisoned the brand in the minds of industry insiders, consumers, and even devotees, just as surely as chemical drugs had poisoned the members of Aerosmith. The proverbial sink-or-swim moment had arrived for Volkswagen. The company had some success with Passats, GTIs, and Cabrios imported from Germany, but reliability problems were rampant with the Golf and the Jetta-the entry-point cars for VWs customers. The company was down to "selling only to die-hard VW fans, the ones who would buy the cars if they came in boxes and had to be assembled in their driveways."6Without a complete revival of its manufacturing, operations, and marketing, it couldnt survive in the U.S. market. | B r a nd s Th at Roc k     Assuming it could fix these problems, the big question loomed-how to regain trust and revive the emotional connection with its lost or dis- heartened customers. The make-or-break moment for Volkswagen in the U.S. market had arrived. After years of living as an endangered species, VW was reborn with the reintroduction of the Bug in 1997. To the delight of VW, the Bug had never really died in the hearts of its fans, many of