1979 Volkswagen Rabbit: VW Jumps The Shark With A Baby Blue Rabbit Made In the USA

Right front 3q view of a 1979 VW Rabbit five-door

In 1978, Volkswagen of America opened a new factory in Pennsylvania to build the VW Rabbit (the North American version of the original Golf), and kicked off a questionable and commercially unsuccessful attempt to re-tailor this groundbreaking subcompact hatchback to better suit American tastes. This well-preserved 1979 Rabbit C shows off one of the most notorious results: a color-coordinated baby blue ensemble that people were still making fun of decades later.

Still of actor Henry Winkler, as the Fonz, wearing a leather jacket, water skiing

“Jumping the shark” refers to the point where a popular work becomes a caricature of itself through foolish creative decisions and desperate attempts to hold onto its audience with shameless gimmicks. It’s an allusion to a now-infamous September 1977 episode of the sitcom Happy Days in which the Fonz (Henry Winkler), still wearing his trademark leather jacket, water skis over a captive shark. Radio personality Jon Hein popularized the phrase in the ’80s, later parlaying it into a website and a 2002 book, Jump the Shark: When Good Things Go Bad.

Right side view of a Whisper Blue 1979 Volkswagen Rabbit C five-door hatchback
1979 Volkswagen Rabbit C five-door hatchback in Whisper Blue / Cascade Motors

If you read popular accounts of Volkswagen’s ill-fated American escapade, they will inevitably talk about the baby blue Rabbits and point to them as the embodiment of everything that went wrong. VW built a U.S. assembly plant, the first foreign automaker to do so since the 1920s; hired former Chevrolet general marketing manager James W. McLernon as the new president of Volkswagen of America (VWoA); and tried hard to Americanize both the Rabbit and its merchandising strategy. This was not a great success, and Volkswagen eventually shut down its Pennsylvania plant for good about a decade after the factory first came online.

Left front 3q view of a red 1977 Rabbit five-door
1977 Volkswagen Rabbit five-door hatchback in Mars Red / Bring a Trailer

In retrospect, VWoA probably erred in even bringing a blue-on-blue car to its initial press preview in the summer of 1978. It wasn’t like VW hadn’t offered bright colors before, including various light pastel blues — previous color options for the German-built Rabbit had included Mars Red, Riyad Yellow, Bali Green, and Miami Blue, and a full 1977 lineup of imported VWs in all the available paint choices would’ve look like somebody dumped out a giant bag of M&M’s. However, conservative silver over black would probably have made a better impression on the journalists assembled for the introduction of the American-made 1979 Rabbit.

Front view of a 1979 VW Rabbit
1979 Volkswagen Rabbit C five-door hatchback in Whisper Blue / Cascade Motors

The Westmoreland-built Rabbits were immediately distinguishable by a new grille with rectangular headlights and new side marker lights, but where the new American-built cars differed most from the German-built ones was inside.

Dashboard and front seats of a 1977 Rabbit
1977 Volkswagen Rabbit in Mars Red with a black leatherette interior / Bring a Trailer

Previously, Rabbit interiors had been much less colorful, even on brightly colored cars. Some model years had offered a navy blue option, and/or “Parchment” (white), but black, brown, and tan were more common, with the paint on the doors offering the main splash of interior color.

Dashboard of a 1979 VW Rabbit, seen from the back seat looking forward
1979 Volkswagen Rabbit C with blue leatherette interior / Cascade Motors

Starting in 1979, the U.S.-built Rabbits offered fully color-coordinated interiors: the dash, steering wheel, door panels, headliner, and carpets now matched the upholstery. This had been customary practice for many American cars for years, but it was a jarring addition to the sober, sensible Golf/Rabbit, and the contemporary car magazines immediately took performative offense. Bill Hartford of Popular Mechanics complained:

Inside is where you really see the Americanization of the Rabbit. Rear-seat speaker ports are built in, colors are coordinated, carpet is thick and, overall, the interior is comfortable, but puffy. In fact it’s downright tacky if you tout the more taut teutonic touch.

Driver's seat of a 1979 VW Rabbit
1979 Volkswagen Rabbit C with blue leatherette interior / Cascade Motors

Car and Driver editor Larry Griffin sneered:

If the outside is little changed, the interior of the U.S. version goes all the way. The Custom we tested had a pale-blue-with-a-hint-of-gray interior. Somewhere along the line someone decided that Americans like color-coordinated interiors, so by George, American Rabbits will have color-coordinated interiors.

There are four colors available, but everywhere we looked in ours, the thing was blue. Blue seats, blue carpet, blue dash, blue steering wheel, blue door panels, blue armrests, blue window winders, blue shoulder harnesses, blue wiper and turn-signal stalks, blue door latches, blue on blue, heartache of heartaches. At least you can’t say VW isn’t consistent, even if you wind up feeling you’re enveloped in some kind of institutional womb.

Back seat of a 1979 VW Rabbit five-door, seen through the left rear door
1979 Volkswagen Rabbit C with blue leatherette interior / Cascade Motors

Personally, I think the blue leatherette upholstery looks fine (although the non-crushed velour cloth upholstery would be much more comfortable), and I find the blue dash and carpeting inoffensive; it’s only in the smaller details (like the blue plastic seat belt reels, the blue turn signal lever, and the pasty blue mouse fur of the package shelf) where the color coordination gets somewhat bilious. However, the color-keyed interior gave critics something to latch onto and point at even where they couldn’t really find anything else wrong, and it came to symbolize their anxiety over an Americanized version of such a distinctly German car.

Engine in a 1979 VW Rabbit
1979 spark ignition Rabbit had a 1,457cc four with K-Jetronic injection, making 71 hp / Cascade Motors

That anxiety was very evident in the Car and Driver commentary. At the press introduction, VWoA provided both German-built and U.S.-built Rabbits for journalists to sample. While in subsequent years VWoA would soften the U.S.-built Rabbit’s suspension at some cost in handling precision, that hadn’t happened yet: Company officials patiently explained that the U.S.-built 1979 Rabbit had the same spring and damping settings, identical tires, and the same steering and suspension parts as its German-built counterpart. Nonetheless, while C/D‘s Larry Griffin said the Rabbit was still “an absolute delight to drive at any practical or impractical speed,” he couldn’t help insisting that the German-built car felt “smoother and more sophisticated” than its American counterpart.

Left front 3q view of a Mexico Beige 1979 Volkswagen Rabbit five-door with round headlights
1979 diesel Rabbits were still imported and didn’t yet have the new grille and lights / Bring a Trailer

Griffin attributed the difference in feel to “normal manufacturing variations,” but it seems just as likely that his perception of the Wolfsburg-built car was colored by a kind of placebo effect German-ness. He knew the German-built car was German, and for buff book editors writing for a buff book audience, that made it safe to praise, whereas the U.S.-built car was obliged to prove that it wasn’t just a miniature Chevy Malibu in a brightly colored bunny suit. (Car and Driver was actually reasonably fond of the contemporary Malibu if was equipped with the F41 suspension, but that was because they saw it as a welcome deviation from the domestic norm; they deemed it praiseworthy despite its Americanness, not because of it.)

Right decklid badge on a 1979 VW Rabbit
1979 Volkswagen Rabbit C five-door hatchback in Whisper Blue / Cascade Motors

Aside from the color combinations, the other area where the latest Rabbit seemed distinctly Americanized was in its merchandising strategy. Car and Driver sniffed that VW had entered the “decor-group war that Detroit has been waging for years.” As before, there were three trim levels — base, “C” (Custom), and “L” (Deluxe) — but there was now also a host of convenience groups and custom decor packages.

Driver's door trim of a blue 1979 VW Rabbit five-door
1979 Volkswagen Rabbit C with blue leatherette interior / Cascade Motors

As with the colors, this approach wasn’t as new as contemporary reviewers made out. When the Rabbit debuted for 1975, VWoA had grouped important features like front disc brakes and windshield washers into a couple of extra-cost option packages so that they could advertise a base price of $2,999. At the time, Car and Driver had grumbled, “the base Rabbit is a real stripper, meaning you have a $3499 car before you get what used to be considered essential.”

Trunk compartment of a 1979 VW Rabbit
1979 Volkswagen Rabbit C with blue interior — trunk carpeting was optional on the Custom trim model / Cascade Motors

However, once VWoA started also offering the U.S.-built Rabbit with chrome lip moldings, vanity mirrors, and stalk-mounted Auto-Cruise, alarm bells began to sound. The blue car pictured here is the mid-level Rabbit C, which had a comparatively mild case of Detroititis. A top-of-the-line Rabbit LS (a Deluxe model with the Deluxe Decor Group) now boasted a distinctly Caprice/LTD-like combination of crushed velour upholstery, 18 oz. cut-pile carpeting, and woodgrain dash applique, so there was certainly some cause for concern if you were allergic to that sort of thing.

Left rear 3q view of a 1979 VW Rabbit five-door
1979 Volkswagen Rabbit C five-door hatchback in Whisper Blue / Cascade Motors

There’s a tendency to blame this Chevrolet-like merchandising approach on Jim McLernon, and seeing Volkswagen brochures pushing option groups with names like the “Z56 Special Instrumentation Package” certainly suggested a strong Chevrolet influence. However, McLernon was primarily a manufacturing executive; VW hired him in 1976 to oversee the establishment of the Westmoreland assembly operation, and then promoted him to president and CEO of the reorganized VWoA in July 1978. Most of the product decisions for 1979 had been made by then, and it seems like VW hired McLernon because they wanted to emulate Chevrolet, rather than that they emulated Chevrolet because of him.

Rear view of a 1979 VW Rabbit
1979 Volkswagen Rabbit C five-door hatchback in Whisper Blue / Cascade Motors

Over the years, the stars of Happy Days have often pointed out that whatever the infamous shark-jumping episode might have said about the show’s creative energy, it was hardly the end, or even the beginning of the end; Happy Days went on for six more very successful seasons. Volkswagen was not so lucky. Initially, things looked promising: Total U.S. Rabbit sales went from 149,170 for the 1978 model year to 214,877 for 1979. However, sales then dipped to 191,716 for 1980, 111,647 for 1981, and a grim 83,058 for 1982. (These totals include the Karmann-built Rabbit convertible, which was still imported rather than built in Westmoreland.)

Left front 3q view of a Colibri Green Metallic 1980 VW Rabbit convertible with its top down
The Rabbit convertible arrived for 1980; it was imported from Germany rather than built in Pennsylvania / Bring a Trailer

It’s tempting to assume that Volkswagen floundered because it tried to get too American, losing touch with its German roots. That seems to have been the conclusion in Wolfsburg, where the Volkswagen board was only too happy to lay the blame on McLernon, forcing him out in September 1982. Ironically, to replace him, they rehired Noel Phillips, who had been VWoA executive vice president for sales and marketing from 1978 to 1980, and was probably at least as responsible as McLernon for the Americanized candy-coated, color-keyed, crushed-velour-upholstered product strategy.

Right side view of a 1980 VW Rabbit five-door
1980 Volkswagen Rabbit C five-door hatchback in Mountain Green / Bring a Trailer

However, I think the bigger problems for Volkswagen lay elsewhere. The Golf/Rabbit was a brilliant package, but Americans were much more likely than European buyers to regard it as a cheap economy car, and balked at its hefty price tag. The point of moving production to Westmoreland was supposed to be to keep the strong Deutschmark from driving up prices, but the U.S.-built 1979 cars listed for about $200 more than the imported ’78s. A 1979 Rabbit C five-door like the blue car pictured earlier started at $5,257, which was around 15 percent more than a Toyota Corolla, a Honda Civic CVCC, or a Dodge Colt — a big jump for a lot of buyers. A 1980 Rabbit C, like the green one pictured above and below, was up to $5,890.

Left front 3q view of a 1980 VW Rabbit five-door hatch
1980 Volkswagen Rabbit C five-door hatchback in Mountain Green / Bring a Trailer

The Rabbit was economical and fun to drive — even the softened early ’80s cars were still noticeably more poised than a contemporary Corolla, and in a completely different league from small domestic offerings — but it didn’t have that traditional Beetle build quality. The Rabbit’s early teething pains had been severe, and the later models still left a lot to be desired when it came to reliability. My family’s Westmoreland-built 1983 Rabbit was as hilariously undependable a car as I’ve ever encountered, and Consumer Guide warned early ’80s buyers to watch out for “excess oil consumption, oil leaks, and excessive premature valvetrain wear” as well as cooling problems that “seem to defy correction.” Parts and competent service tended to be expensive too.

Left front 3q view of a brown 1981 VW Rabbit five-door
1981 Volkswagen Rabbit LS Diesel five-door hatchback in Sandstone Metallic / SMclassiccars.com

Also, by the early ’80s, the Rabbit was looking old, and Americans didn’t seem keen to accept it as another perennial that could continue indefinitely with modest updates. The Beetle was of course an even older design, but its heyday had been so long after its original development that it had seemed to stand entirely outside the maelstrom of mainstream automotive trends. The Golf/Rabbit was surrounded by other contemporary designs in the same mode (including some outright imitators), some of which were fresher and cheaper, and which sometimes made a smoother transition to the three-box sedans and coupes American buyers increasingly preferred. Volkswagen chairman Carl Hahn said defensively, “We don’t want to offer the customer a new shape every day,” but, judging by VW’s 1980s market share relative to Honda and Toyota, it was the wrong call for the U.S. market.

Interior of a 1981 VW Rabbit, from the trunk looking forward
1981 Volkswagen Rabbit LS Diesel with Russet velour upholstery / SMclassiccars.com

In the early ’80s, VWoA gradually backed away from the bright colors, although there was still more interior color coordination than purists liked, and Car and Driver complained that some Rabbit interior materials felt like “early Kmart” compared to the European Golf.

Interior of a 1984 VW Rabbit GTI
1984 Volkswagen Rabbit GTI in Royal Red with Midnight Blue cloth upholstery and red “hotstripe” / Bring a Trailer

The belated U.S.-market GTI, introduced in 1983, could still be positively gaudy. The 1984 car pictured above and below is bright red on the outside, but has a color-keyed blue interior with red door accents and vivid “hotstripe” upholstery.

Right front 3q view of a 1984 VW Rabbit GTI
1984 Volkswagen Rabbit GTI in Royal Red with aftermarket Hella fog lamps / Bring a Trailer

Enthusiasm for the GTI gave Rabbit sales a mild bump for its final model year, to 115,853 cars (including convertibles), but the Rabbit still lagged well behind the Civic, Corolla, and Nissan Sentra.

Aerial photo of the Volkswagen plant in Pennsylvania
Volkswagen Westmoreland Assembly was in New Stanton, Pa., about 35 miles southeast of Pittsburgh / Volkswagen AG

In 1984, Volkswagen retooled its Westmoreland plant to build the U.S.-market second-generation Golf, but the plant was now running at less than half its capacity, which made it a money-loser. Attempts to reassert VW’s Germanic character, as the buff books had wanted, failed to produce any lasting improvement in sales; by 1987, U.S. Golf and Jetta sales were down to 76,400 cars, of which only 66,696 were built in the States. VW abandoned its plans to open a second U.S. factory in Sterling, Michigan, and finally announced in late 1987 that Westmoreland Assembly would be closed. The plant ceased operation in July 1988 after producing almost 1.2 million vehicles in 10 years.

Left front 3q view of a 1979 VW Rabbit five-door hatch
1979 Volkswagen Rabbit C five-door hatchback in Whisper Blue / Cascade Motors

There are some people who never really let Volkswagen live down these color-coordinated American-built, Americanized Rabbits. However, they still have their fans. The Whisper Blue 4-speed car pictured here was offered in August 2024 by Cascade Motors in Portland for an eye-opening $12,999. I think they might have gotten it too.

 

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