After the Passat and Jetta lineups, it’s time for the U.S. market Beetle to replace the full of character, but outdated, 2.5-liter inline-five with the new EA888 1.8-liter turbocharged and direct-injection TSI gasoline engine.

The new Beetle 1.8T hatch is priced from $20,295, while the convertible model starts at $25,170, with both models keeping the same MSRP as their outgoing 2.5L engine counterparts.

Built at VW’s facility in Mexico, the 1.8 TSI matches the output of the 2.5-liter unit at 170hp, but delivers it at 700 fewer revs (from 4800 to 6200 rpm), while it offers seven pound-feet more torque at 184 lb-ft, produced at 1,500 rpm or 2,750 revs less than the 2.5L and also keeps the same figure until 4,750 rpm.

Another key highlight is the better EPA estimated fuel economy figures, with the 6-speed automatic 1.8T returning 33mpg highway, 25mpg city and 28mpg combined, versus the 2.5L’s 29mpg highway, 22mpg city and 25mpg combined.

On the manual transmission version of the 1.8T, the EPA city/combined/highway fuel economy ratings have improved from 22/25/31 mpg to 24/27/33 mpg, while in the Beetle Convertible, from 21/23/27 mpg to 24/27/32 mpg.

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