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Volkswagen, aiming to triple sales, overhauls its Beetle

Klaus Bischoff, head of design, Volkswagen Brand, introduces the 2012 Volkswagen Beetle, in New York, Monday, April 18, 2011. (AP Photo/Richard Drew) The redesigned Volkswagen Beetle is seen in this undated handout photo.
Klaus Bischoff, head of design, Volkswagen Brand, introduces the 2012 Volkswagen Beetle, in New York, Monday, April 18, 2011. (AP Photo/Richard Drew)

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Date: Monday Apr. 18, 2011 10:46 PM ET

In its 73-year history, the Beetle has evolved from the hippie ride of choice to a cute chick car. Now Volkswagen is reinventing it again.

The company introduced an edgy new design Monday for its signature model, giving it a flatter roof, a less bulbous shape, narrowed windows and a sharp crease along the side. Gone is the built-in flower vase on the dashboard.

It's the first overhaul since 1998, when Volkswagen came up with the New Beetle. VW, which wants to triple its U.S. sales of cars and trucks over the next decade, says the changes will appeal to more buyers, especially men.

But the changes could also anger fans, who love the little four-seater for its huggable curves and perky attitude.

"I hope they keep the fun in the car, and all the round angles," says Howie Lipton, who owns a computer repair business in Hamilton, Ontario, and helps organize an annual New Beetle show in Roswell, N.M.

Lipton says he was hoping VW would update the spare interior, and his wish has been granted. VW's lead Beetle project manager for the U.S., Andres Valbuena, says the 2012 model will have a navigation system, a significantly larger trunk, more luxurious materials and ambient lighting.

"It ties in more with our other products. It's more upscale," Valbuena says. The 2012 Beetle goes on sale this fall. VW won't yet say how much it costs.

The design is based not on the New Beetle but on the original Beetle, which was created in Nazi Germany in the 1930s, came to the U.S. after the Second World War and became a counterculture favourite because of its low cost and unusual look.

It was the antithesis of the land yachts being churned out in Detroit, and Baby Boomers loved it. In 1968, a Beetle with a mind of its own, Herbie, starred opposite Dean Jones in the hit Disney movie "The Love Bug."

But sales slowed as VW faced tough competition in the small-car segment from Japanese and U.S. automakers and money problems back in Germany. U.S. sales of the original Beetle peaked at 200,000 in 1962. VW stopped selling the car in the U.S. in 1979.

In 1998, the company introduced the New Beetle, an overhaul of the original that became a huge hit. Buyers swooned over its cute, rounded styling. For a time, the Beetle was outselling such stalwarts as the Ford Focus and Chevrolet Impala. When a convertible version was released in 2003, U.S. sales rose to almost 93,000.

Larry Erickson, who led a lauded redesign of the Ford Mustang six years ago along with New Beetle designer J Mays, says people are unusually attached to the original Beetle and New Beetle because of their friendly shapes and the confident but unaggressive way they sit on the road.

It will be difficult for VW designers to capture that emotion and still make the car look current, he says, especially because it hasn't been that long since the 1998 redesign.

"Every car manufacturer faces this when they do a facelift, but in the case of the Beetle, you've got something people feel fairly strongly about," says Erickson, who now teaches at the College for Creative Studies in Detroit. "It has a certain personality to it, an endearing quality."

Valbuena says VW believes the new design stays true to the name but will broaden the car's appeal beyond the 1998 version, which appealed heavily to women in their 50s and 60s. In focus groups, men liked the more aggressive design.

In addition to an upgraded, 170-horsepower, 2.5-litre gas engine, VW will offer a sportier, 200-horsepower, turbocharged gas engine -- Volkswagen hopes it will appeal to guys -- and a fuel-efficient diesel. VW estimates that the new basic engine will be slightly more efficient than the current one, which gets 29 mpg on the highway. The diesel will get up to 40 mpg.

Even if it satisfies its fans, the third incarnation of the Beetle will have to compete in a U.S. small-car market that is bigger and much more competitive than it was in 1998.

When the New Beetle was introduced, European cars like the Mini Cooper, Smart Fortwo and Fiat 500 weren't sold in the United States. By last year, the Mini Cooper was outselling the Beetle almost three-to-one.

And buyers who want a funky design have new options like the Kia Soul, Nissan Cube and the Scion xB. VW sold about 16,500 New Beetles in the United States last year, down 82 per cent from the 2003 peak.

Working to Volkswagen's advantage are higher gas prices and fuel-economy standards, which make small cars a smarter choice, along with a population boom of young buyers. Their parents, the Baby Boomers who fell in love with the Beetle 50 years ago, are also looking to trade down in size.

Rebecca Lindland, director of strategic review at the consulting firm IHS Automotive, says U.S. sales of small specialty cars like the Beetle dropped during the recession as buyers went for bigger, cheaper options like the Toyota Corolla. The Corolla costs almost $3,000 less than the Beetle, which starts at $18,690.

But Lindland says U.S. specialty car sales are expected to more than double to 350,000 cars per year by 2013.

VW will depend on high-volume sellers like the Jetta and Passat sedans to meet its ambitious sales goals, which call for selling 1 million vehicles in the U.S. and 10 million worldwide by 2018.

But it still sees the Beetle as a key part of the brand, as it showed Monday with simultaneous unveilings of the car in New York, Berlin and Shanghai. To many people, VW is synonymous with the Beetle.

"It is an iconic vehicle," Lindland says. "It represents, for most Americans, a very positive image."

Comments are now closed for this story

Jeff
said
0 0

@just a car fad: my wife has a Nissan Versa and it's a PIG on gas. Nissan sacrificed fuel efficiency for power (140 HP). $55-60 to fill ($1.29 per liter) and it gets just 400 km per tank (city). Nissan says it does 800 km per tank! It's around 500 km a tank on the highway. Do NOT buy a Versa.


really?
said
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ugly..


David
said
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They most definitely will need to make them more reliable and get rid of the attitude " oh its too old to work on after all it is 8 years old, have you thought about buying a new one?" Wish I had a dollar every time I've been told that one. I have noticed that the miles per gallon has definitely plummeted; 25mgp is the actual with a golf?


Sambo
said
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The new look is great. Unfortunately, the Volkswagen (people's car) doesn't work for me. A compact, sporty car needs a basic four cylinder engine. The only way to make this car more fuel friendly is to get the diesel for thousands more. I had a '99 four cylinder Beetle -- great mileage and a "pocket rocket." Too bad we can't get that engine in the USA. No thanks.


Maggie
said
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This new model looks more like the original and I agree with that ... my parents owned 2 beetles and a 411 station wagon ... I owned a 1973 Supper Bug for years - it was 21 years old when a sold it to buy a Jetta ... now on my 3rd Jetta since 1989 - happy driver !But my criticism is they now need to redo the Jetta etc and bring back style - instead of looking like every other car on the road.. everything is monotone... lets get some pizazz along with power and perks inside !


Android
said
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Love this new design. I am in the market for one.


Edb(Hamilton)
said
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Unless it's rear engine, rear drive and air cooled...it's not a Beetle.


It's just a fad car
said
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Like the Mini, the New Beetle is just a fad car and appeals mostly to women. It serves no practical purpose, not even as a city car. With the economy in the state it's in and gas with gas hitting $1.50/L very soon, cars like the Toyota Yaris, Nissan Versa, Honda Fit and Mazda 2 are much more sensible choices. I'm buying a Yaris myself. The problem with these cutesy niche vehicles is that they're basically toys and when the original owner gets so frustrated with them, they do something rash like buy and SUV. So many women go from Mini's and New Beetles straight to SUV's it isn't funny.VolksWagen should just cut their losses and focus on the Jetta and Golf. The Golf is so much more practical but so very much over priced compared to the Japanese cars.


Mike
said
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Last time I priced a VW Beetle it was out of sight. It felt like a tank to sit in and the doors closed like it was a tank. This new one is interesting but probably not worth the coin if the past is any benchmark.


Dave
said
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I'm not a huge fan of the beetle.. more of a Civic man. But I do like this design and think they did a nice job keeping with the tradition of the original. And I wish Honda would use cool LED's at the headlights the way VW does here! Nice car and SMART to offer a 200hp version for us guys. It can compete with the 200hp Civic Si.


Rob
said
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If VW wants to triple it's sales, this probably won't do it. What VW needs to do is import some of the models it already makes, into North America. In Europe they have multiple mini and micro van options, the Scriocco (a sports car), the Polo (a smaller Golf), and different renditions of the golf including a thing called the GTD which is a 150 hp turbo diesal which goes from 0 - 100kmph in the 7 second range and gets about 44mpg


eddytoronto
said
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1958 to 1977 Volkswagen Beetle convertible this is the perfect little car to cruise around in....They can't make them like before it's too expensive....Those Beetles were nearly airtight and will float for a few minutes on water.. Hirst persuaded the British military to order 20000 of the cars...


cixcents
said
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another unique car blending back into the plain.status quo is king, i suppose.


Don
said
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Okay does this not look like the return of the AMC Pacer??


John
said
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I think it looks GREAT. The front and back look incredible. Great job VW!


Brian
said
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Just another new car. There's a load of them out there and most of them look alike loaded with a bunch of useless gadgets and they are all overpriced.


Mimi2005
said
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I've always wanted a Beetle. But they are too expensive for me. By the time I pay for things I want in it and need, it'll cost 25-30 grand. I'll stick with my Toyota Corolla which sits 5 and costs less to maintain. Another thing which turned me off, like everything else in this world with money, they are gearing towards the men's market. I know a lot of guys who buy things because of their wives, or girlfriends.


Michael
said
0 0

Is it just me or does this look exactly like the current beetle? BORING....V-Dubs are boring.


Kim
said
0 0

I was REALLY hoping with the redesign it would have 5 seats. Woman my age with kids would have been a huge market for them. In fact my husband and I were prepared to buy a new one, but I just found out here that it only fits 4.....so bummed right now !


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