
Affected by the emissions scandal, Volkswagen had previously borrowed from major European banks to handle the incident. The enormous financial pressure forced Volkswagen to abandon some low-profit projects, such as the Phaeton, Beetle, and Scirocco. Due to the emissions scandal and sales failing to meet expectations, Volkswagen officially announced that the Beetle would cease production in July 2019. Here is additional information: Beetle Introduction: The current Beetle model is the second-generation product after Volkswagen revived the series, built on the same platform as the sixth-generation Golf, namely the PQ35 platform. However, after the Golf was updated, the Beetle model did not follow suit. Previously, Volkswagen's brand technology chief, Frank-Welsch, stated at this year's Geneva Motor Show that, for various reasons, the current Beetle model would not receive a new generation. This also means that this iconic model, bearing the name of Volkswagen's brand totem, will become history.

To be honest, it's quite a pity that the Beetle was discontinued, but it's a long story. I chatted with a Volkswagen engineer at an auto show, and the main reason was unsustainable sales. After 2015, it only sold a little over 20,000 units globally each year—not even a fraction of the Golf's sales. With electric vehicles dominating the market now, the Beetle's retro design has become a liability, making it extremely difficult to fit batteries inside. Additionally, the Mexican factory needed to free up production lines for more profitable SUVs, and last year, the plant was converted to produce the Tiguan. The most painful part is that younger generations just aren't interested—market research shows Gen Z views it as their grandma's jewelry box: pretty but impractical. Although the final batch of Final Edition models in 2019 sold out quickly among collectors, nostalgia ultimately couldn't outweigh the financial reports.

As an automotive industry observer, I believe the discontinuation of the Beetle resulted from multiple converging factors. Stringent emission regulations served as the key catalyst - retrofitting the outdated platform proved too costly, prompting Volkswagen to fully allocate its R&D budget to the ID series EVs. The cost structure became unsustainable: laser-welding curved body panels required 30% more man-hours than conventional vehicles, plus specialized components. More critically, its positioning grew ambiguous - neither authentically retro nor practically spacious. Today's consumers either opt for tech-forward models like the Model 3 or genuinely distinctive options like the Mini, leaving the Beetle uncomfortably straddled in between. Ultimately, when nostalgic premium can no longer offset manufacturing costs, discontinuation becomes the inevitable choice.

I have a personal experience with the Beetle's discontinuation. Last year, I wanted to find a convertible version as a birthday gift for my girlfriend, only to discover that used ones were more expensive than new ones! The salesperson told me that the labor cost alone for this car was 25% higher than the Golf's—same platform, but each Beetle required 340 additional welding points. In owner groups, the most discussed issue was the difficulty in finding parts; replacing a rearview mirror could take three weeks. A leaked 2018 internal document revealed that the profit per Beetle was less than $800, while the ID.4 could make $4,500. More critically, safety standards were a concern—the 2019 IIAD test gave it only an 'M' (Marginal) in side-impact tests, and improving it would require chassis modifications. Now, with the production line converted to build the Tiguan, capacity has doubled. Who would still care about this money-losing bug?


