The Volkswagen Type 3 is a compact car manufactured and marketed by Volkswagen from 1961 to 1973. Introduced at the 1961 Frankfurt Motor Show, Internationale Automobil-Ausstellung (IAA), the Type 3 was marketed as the Volkswagen 1500 and later the Volkswagen 1600, in three body styles: two-door Notchback, Fastback and station wagon, the latter marketed as the 'Squareback.'
The Type 3 diversified Volkswagen's product range beyond the existing models – the Type 1 (Beetle), Type 14 Karmann Ghia, Type 2 (Bus) – while retaining their engineering principles, notably the air-cooled engine and the rear-engine, rear-wheel drive layout.
The Type 3 was initially equipped with a 1.5 L (1493 cc) engine based on the air-cooled 1192 cc flat-4 found in the Type 1, but given a 69 mm stroke it became the basis for the 1300 cc and 1600 cc engines that followed in the later Beetle (Type 1) and Volkswagen Type 2 T1 and T2. While the long block remained the same as the Type 1, the engine cooling was redesigned by putting the fan on the end of the crankshaft instead of on the generator. This reduced the height of the engine profile, allowed greater cargo volume, and earned the nicknames of "Pancake" or "Suitcase" engine. The engine's displacement would eventually increase to 1.6 L (1584 cc).