West Germany's Volkswagens came beetling into the U.S. auto market a decade ago, and started the compact trend. U.S. automakers managed to fight off the trend by joining it. Now they are fighting back on Volkswagen's home ground and challenging VW's lead as West Germany's fastest selling car by appealing to the German yen for more luxurious autos. In 1963's first nine months, VW's share of the burgeoning West German market dropped from 33% to 28%, while General Motors hiked its share from 18% to 23½% and Ford rose from 14% to 16% .
Competition has sharpened because U.S. companies...
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