While VW has made no official announcements of the replacement for the bow finished VW New Beetle. This interesting mule was recently spotted testing in (we assume) Germany. VW has remained very tight lipped in regards to the fate of the replacement Beetle other than they were in fact working on a car and that it would overcome the outgoing New Beetles flaws. Notably the cute look and lack of trunk/rear sear room. Also the new car would ride on an entirely new chassis from the previous car which still used the 4th generation Golf platform.
Look for a later feature on one of the last New Beetles produced soon from a recent test drive we did, along with a review of the new 2011 Jetta.