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(Reuters) - Volkswagen (VOWG_p.DE) said on Thursday it would stop producing its Beetle compact car in 2019, ending a model that looked backward to the 1960s counterculture as the automaker prepares for a leap toward a future of mass-market electric cars. The original VW Beetle, developed in the 1930s, made a journey from a product identified with Adolf Hitler to a symbol of Germany’s rebirth as a democratic, industrial powerhouse after World War Two. In the 1960s, the Beetle was a small-is-beautiful icon of the postwar baby boom generation. Volkswagen discontinued U.S. sales of the “bug” in 1979, but continued production for Mexico and Latin America.

In the mid-1990s, at a time when Volkswagen was struggling to rekindle sales in the United States, then-Chief Executive Ferdinand Piech pushed to designer black cufflinks revive and modernize the distinctive Beetle design pioneered by his grandfather, Ferdinand Porsche, The result was a crescent-shaped car called the “New Beetle,” launched in 1998, which offered playful touches such as a built-in flower vase, The New Beetle was a hit during its early years, with sales of more than 80,000 in the United States in 1999, but recently the car’s U.S, sales have suffered along with most other small cars, Overall, VW has sold about 500,000 Beetles globally since 1998, the company said..

Volkswagen sold a total of 11,151 Beetles in the United States through the first eight months of 2018, down 2.2 percent from the same period a year earlier. U.S. consumers looking for a small Volkswagen vehicle overwhelmingly prefer the Jetta sedan, or a Tiguan compact sport utility vehicle. The Jetta, Tiguan and Beetle are built for North America and other markets at a factory in Mexico. The end of the Beetle comes at a turning point for Volkswagen. The German automaker’s last three years have been rocked by the fallout from a scandal caused by its admitted cheating on diesel emissions tests. Now, Volkswagen is gearing up to launch a wave of electric vehicles to appeal to a new generation of environmentally conscious consumers - children and grandchildren of the 1960s Beetle enthusiasts.

In a statement announcing the end of the Beetle, Hinrich Woebcken, head of Volkswagen of America, said that as the company ramps up its electrification strategy, there are no plans to replace the Beetle, However, his statement did not rule that out someday, He noted the company’s I.D, Buzz, a prototype for a 21st Century reincarnation of the microbus, The automaker has said it intends to put a vehicle similar to the I.D, Buzz into production as an electric vehicle, The company said two special Beetle models will join the final lineup - Final Edition SE and designer black cufflinks Final Edition SEL - in the United States and would offer driver-assistance technology..

WASHINGTON (Reuters) - Volvo Cars has asked the Trump administration to exempt the company’s Chinese-made mid-size XC60 SUV from new 25 percent tariffs, the latest automaker to seek relief from new levies on imports from China. The automaker confirmed on Friday it has sought an exemption with the U.S. Trade Representative’s Office (USTR) for the popular vehicle that accounted for nearly a third of its U.S. sales in August. “The imposition of the additional 25 percent duty on mid-size SUVs would cause severe economic harm,” Volvo said in an Aug. 16 letter to USTR that has not been previously reported. “The burden of the 25 percent duty imposed on vehicles imported from China will also be borne by American consumers.”.

Earlier this week, Volvo Cars and its Chinese owner Geely [GEELY.UL] postponed plans to float shares in the Swedish carmaker, blaming trade tensions and a downturn in automotive stocks, The XC60 in August accounted for 31 percent of Volvo’s U.S, designer black cufflinks sales, Volvo said the XC60 was initially built only in Sweden and then it added production in China, From January to early March, Volvo was sourcing vehicles from both countries but since March U.S, XC60s have only come from China, the company said..

Volvo recently started commercial production at its new Charleston, South Carolina plant, where it is building S60 sedans, it told USTR, “but over time given our global manufacturing footprint we could also anticipate production of the XC60 in the U.S. as well.”. A Volvo spokesman did not comment on whether new tariffs have affected vehicles now in U.S. showrooms or if the levies will prompt price increases. The Trump administration imposed new 25 percent tariffs on $34 billion in Chinese goods in July, including on Chinese-made vehicles.

Volvo cited General Motors Co’s (GM.N) July 30 request seeking an exemption for its Chinese-made Buick Envision SUV in its petition, GM’s petition suggested a cap of 40,000 vehicles that could be exempted while Volvo suggested that the government not impose any cap, USTR has not ruled on either petition but has said if it grants exclusions they will apply retroactively to the data the tariffs were imposed in July, GM said designer black cufflinks in a separate response to Volvo’s petition filed with USTR that it disagreed with Volvo’s request, arguing Volvo should “submit its own exemption request to be adjudicated on the merits.”..

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