Europe was devastated in the World War and was divided between Eastern and Western blocs. Eastern part of Germany and area to East of it were taken over by Russian Federation; the Western part of Germany was divided amongst British, French and American forces.
America launched Marshall Plan in 1948 to provide funds for reconstruction of Western Europe. Russia was offered to participate in reconstruction of Eastern Europe, but it refused, and denied Marshall Plan aid to European territories under Russian control.
The plan helped the Western European countries like Britain, France, Italy and West Germany to get back on their feet. The 1950s was a period of struggle, but factories producing small cars with excellent fuel economy helped to rebuild the economies of these countries. Volkswagen from West Germany; Fiat from Italy; Peugeot, Citroën and Renault from France; and Austin, Morris, Rootes, Ford and Vauxhall from England were producing small cars for impoverished buyers locally and also progressively exporting to their former colonies in Asia and Africa.
With economic growth, more upmarket cars like Mercedes from West Germany; Alfa Romeo and Lancia from Italy; Bugatti from France; Hispano-Suiza from Spain; and Jaguar, Bentley and Rolls Royce from England were gaining popularity, making inroads in lucrative American market, and earning precious foreign exchange for their manufacturers.
motorworld 