Volkswagen Australia Ltd was formed in 1957 by Volkswagen AG of Germany and various Australian state Volkswagen distributors.^[1] The company acquired the vehicle assembly facilities of Martin & King at Clayton in Victoria, that site having been used for local assembly of the Volkswagen Beetle since 1954.^[1] By 1960 sheet metal panels were being pressed at Clayton and by 1967 the engine and most components were being produced there.^[1]

In 1967 Volkswagen Australia developed a unique model, the Country Buggy, which used components from the Beetle and the Kombi.^[2]

Due to falling sales the operation reverted to assembly only in 1968.^[1] A new company, Motor Producers Limited was formed and operations were expanded to include Datsun and Volvo models as well as Volkswagens.^[1] The factory was sold to Nissan in 1976 and Australian assembly of Volkswagens ended shortly after.^[1] Volvos continued to be assembled up until 1988, and Nissans until 1992.^[3]