Muhammad Built my Hotrod

When you think celebrities and cars, you might think manufacturer endorsements and advertisements, or dealerships; Muhammad Ali is probably the last person who comes to mind.

Yes, that Muhammad Ali, the boxing legend and civil rights activist. You might be surprised to learn he once owned a Brazilian automobile manufacturer.

How does a celebrity like Muhammad come to own a Brazilian car company?

Glad you asked. We need to cover a little history first. Though Ford made Model T’s in Sao Paulo starting in 1919, it wasn’t until the 1950s that Brazil became serious about automobile manufacturing. The government began making efforts to industrialize the economy. They encouraged domestic car production by applying taxes of up to a 100% on imported vehicles, even banning imported vehicles for a period of time. To get around this, General Motors, Toyota and Volkswagen eventually set up factories there.

Meanwhile, the government’s initiative spawned dozens of quirky car companies. Companies like DKW Malzoni. DKW was a German manufacturer from the original four auto union companies, which went on to become the Audi we know today. Malzoni was a Brazilian businessman and lawyer. The Brazilian arm of DKW was called DKW Vermag — they focused on producing cars for Brazil’s middle-class.