Volkswagen continued to go from strength to strength in the U.S. and 1957 production increased to 372,518 Beetle sedans and 8043 cabriolets. U.S. sales increased to 64,242 units, but VW’s share of the import market actually fell to 31.1 percent, thanks to the arrival of Renault, British Fords and other imports. A new VW factory was opened in Australia and the German parent took over the old Henschel works to increase production.

U.S. prices were unchanged for the last oval window model. The 1957 Beetle Deluxe Sedan cost $1495, the Sunroof Sedan was $1575 and the Cabriolet $1995. Exterior Sedan paint colors and interior trim colors and materials remained the same as 1956. Cabriolet paint, top, interior and carpet details were unchanged.

Technical improvements included new alloy timing gears, a new ignition coil, stronger starter, improved heating vents, more sophisticated windshield wiper motor, and power output increased to 36 bhp at 3,700 rpm. Top speed was now quoted as 68 mph and, as before, it was also the announced cruising speed. This would be the last year for the oval window Volkswagen Beetle.