Yes...I remember seeing that!
Wasn’t that a satirical ad in The National Lampoon?
It was a satirical ad. However, VW got a lot of flack from outraged customers, who thought that VW had placed the ad itself. VW responded with a $30 million damage suit against National Lampoon, charging violations of trademark, copyright laws, and defamation. The 1973 settlement was that Lampoon agreed to withdraw all unsold copies of the magazine, to destroy the plate of the ad, and to run Volkswagen’s statement on the incident in the magazine.