Time was catching up with the Volkswagen Beetle in 1974. After 25 years in the U.S., The front-wheel drive water-cooled Golf loomed on the horizon. Total VW sales dropped below one million worldwide and U.S. sales plummeted to 226,098 Beetles and Super Beetles, with 5730 Super Beetle Cabriolets. This would be the last year for the original Type 1 model as VW’s main small car offering, as the Golf (or Rabbit in U.S. terms) would supplant it as the entry-level model.

U.S. cars now had fuel injection to meet emissions regulations and California models had catalytic converters as well. More precise rack-and-pinion steering was now fitted to the Model 1303 Super Beetle, which improved driver feel. The Beetle now had 5-mph bumpers in front and 2.5-mph bumpers in the rear and an ignition interlock which required the seatbelt be clicked before the car would start. Front seat headrests were smaller and an AC alternator was fitted at last. Cylinder heads were made of a more durable alloy and kingpin angles were changed for better stability during emergency stops.

Government regulations increased prices markedly. The old Deluxe Beetle now cost $2625, the Super Beetle Sedan was $2849 and the Cabriolet $3475 – almost $500 more than 1973.