VW, now one of the world's largest vehicle manufacturers, were in trouble in the early 1970s. Myriad attempts to replace the Beetle had failed, leaving the company reliant on a 1930s design and in need of a new model. Market research indicated that medium size hatchbacks were likely to be where future demand was greatest, so the company developed one; the Giugiaro styled Golf. Announced in May 1974, the Golf was a thoroughly modern, well built, water-cooled, front-wheel drive hatch, which from the beginning managed to be both classless and chic, over a million were sold in the first two years alone!