'...mass production began in December 1945, as Germany emerged from the ruin of war. By then, Volkswagen was controlled by the British military government, which handed vehicle manufacturing back to Germany because no British manufacturer wanted to take on the plant. The VW car was “quite unattractive to the average buyer”, a leading British motor industry executive decided.'
I seem to remember reading somewhere that it was Leonard Lord, boss of Austin, who decided it was no good. It was also probably a relative of his at Decca Records some time later who thought John Lennon and his pals weren't good enough for a recording contract.