Automotive history

From Military Utility Vehicle to Rally Car Dominance: The Volkswagen Iltis

by Glen Konorowski
25 December 2024 3 min read
From Military Utility Vehicle to Rally Car Dominance: The Volkswagen Iltis
(Photo: Volkswagen AG)

Every once in a while there is an oddball vehicle that morphs into being from totally unexpected origins. That’s just what happened with the Volkswagen’s Iltis. From a publicity effort for its new civilian utility vehicle derived from a military spec model came the foundation for a dominant rally car. 

The Iltis (“polecat” in German) was a vehicle designed to replace the 1970s German military’s outdated DKW Munga (an all-wheel-drive Jeep-like vehicle) and the ageing Type 181 VW Thing. Volkswagen had, in the mid-1960s, purchased much of the Auto Union group, whose assets eventually formed the Audi brand. The Munga was developed by Auto Union in the mid-’50s, and, like all of DKW’s products, was beginning to show its age with its two-stroke engine by the time VW took over the company.

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Volkswagen Iltis Munga Auto Union original vehicle military
DKW Munga (Photo: Volkswagen AG)

The German military had put out a tender by the 1970s for a new utility vehicle that would suit its newer requirements. Meanwhile, VW thought it should capitalise on the technologies that came with the purchase of Auto Union. To win the contract for the new vehicle, VW took the old Munga body and updated it for a new drivetrain; with a beefed-up Audi 100 all-wheel-drive system and VW’s simple, proven, and inexpensive 1.7-litre four-cylinder Rabbit/Golf motor placed longitudinally in the engine bay, the 70bhp Iltis was ready.

The transmission was a four-speed unit with an extra low gear, which in a sense made it a five-speed. This combination of technology easily won the contract for the new military utility vehicle, beating out the more expensive Mercedes G-Wagen. Production of the Iltis then kicked off in 1978.

Given that the Munga had won some success in the civilian market, VW decided it, too, would enter retail showrooms with the Iltis. The new vehicle, codenamed 183, launched at the Geneva auto show in 1979. To VW’s surprise, the Iltis was not a big crowd-pleaser, due mostly to its high price.

To drum up some needed publicity for the new civilian-issue Iltis utility vehicle, VW decided that something like a rally might be in order. The company’s next move: hire experienced drivers Freddy Kottulinsky and Gurd Loffelmann to head a team of four Iltises.

Volkswagen Iltis cutaway
(Photo: Volkswagen AG)

VW’s ambitious plan was to enter the cars in the relatively new Paris to Dakar rally of 1980, an event of over 6000 miles that required cars to run on paved and gravel roads as well as across the desert. The VW teams were to handle all their own repairs. Unlike today’s rally teams, which are made up of highly specialised cars backed by a lot of money and modified parts to cope with the terrain, these cars were more or less configured as stock.

To prepare for this gruelling rally, VW made only light mechanical modifications to its Iltis fleet, including a more suitable camshaft for the larger carburettor that was added. The cam and carburettor combination increased horsepower to an estimated 100. Other period-standard rally modifications, such as improved lighting, proper safety belts, as well as tyres from Uniroyal, were added.

Well, Volkswagen’s gamble paid off. Kottulinsky/Loffelmann’s Iltis came in first place. The other Iltises placed second, fourth, and ninth. Unfortunately, the rally glory did not translate into civilian sales of what were still rugged and expensive vehicles. In the end, Volkswagen delivered more than 9500 units to eight countries’ armies (2500 of these units were built in Canada by Bombardier to a slightly tougher standard). The Iltis’ all-wheel-drive system, proven in the toughest of settings, formed the basis from which Audi eventually developed its famous Quattro system and dominated international rallying.

Volkswagen Iltis racing
(Photo: Volkswagen AG)

So what is it like to drive a 45-year-old Iltis off-road, you ask? Once in the seat and familiarised with the controls, this tough VW is pretty civilised to drive. But given the 70bhp and low gearing, do not expect to win any modern races. The four-wheel independent suspension manoeuvres fairly easily over rough terrain, and its climbing ability up hills is nothing short of amazing. After going off-road on my drive, I got on some paved sections of road, and I have to admit, the Iltis seemed to have reasonable manners. Military-grade tyres don’t inspire great handling on pavement, but I wager it has some potential if equipped with capable off-road tyres. As for braking, well, let’s just say it does not meet today’s standards.

Volkswagen Iltis racing
(Photo: Volkswagen AG)

The Iltis does have some faults, the first of which is related to handling; it is tippy due to its height, something retired soldiers remarked upon, and I, too, noticed it while driving. The second weakness is that the Iltis wants for space on the inside; a soldier/rally driver could not jump out so easily. To really hammer the Iltis in a more aggressive manner, like what would be expected in a rally, would take a lot of practise and confidence, and trust that despite its faults, it does effectively have the first generation of the advanced Audi Quattro system.

These vehicles were not inexpensive in the day and, in my native Canada, cost the government between $50,000 and $80,000 per vehicle. With most prices hovering between $10,000 and $20,000 today, you are getting a lot of technology for your dollar, and a pretty cool backstory, too.

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