Strong public reaction persuaded the company to move this car into production, and in 1998 Volkswagen launched the New Beetle, designed by J Mays and Freeman Thomas at the company's California design studio. The New Beetle is related to the original only in name and appearance, under the hood, it is a modern car in every way, based on the Volkswagen Golf Mk4

Still, it carried many design features related to the old Beetle: separate wings, vestigial running boards, sloping headlamps and large round tail lights, as well as a high rounded roofline that provides enough headroom for tall drivers.

A convertible version of New Beetle started production in 2003, 5 years after launch, and after many buyers had had aftermarket conversions.