VW Says Goodbye to Beetle to Make Room for New SUV

  • New model will start output next year, hit showrooms in 2021
  • SUV to be beefed-up version of Tharu model sold in China

Volkswagen AG Beetle cars wait to be driven out of the Volkswagen AG plant in Puebla, Mexico.

Photographer: Susana Gonzalez/Bloomberg

Volkswagen AG’s “Love Bug” has been squashed by the SUV boom.

The German automaker marked the end of production of the iconic Beetle at its plant in Puebla, Mexico, on Wednesday and wasted no time talking about what will take its place: a compact sport utility vehicle. It’ll be a beefed-up version of a model sold in China called Tharu and is code-named Tarek internally, though a VW spokesman said the name will change once it goes to market.