Volkswagen made minor changes to the Beetle for the 1966 model year but boasted it had introduced 132 improvements since 1961. U.S. sales topped 300,000 units for the first time at 302,423, with 5699 being Cabriolets. Prices rebounded a little with the 1966 Beetle Deluxe Sedan costing $1585, the Sunroof Sedan $1675 and the Cabriolet back to $2075.

The 1285 cc “1300” engine developed 40 bhp and was a de-stroked 1500cc motor from the Type 3. Performance remained leisurely with 0-60 mph in 23 seconds and top speed of 76 mph. The 1300 model received ventilated wheels and flatter hubcaps and could be recognized by the “1300” on the trunk lid.

The front suspension now featured ball joints and the torsion bars had 10 leaves. Front seats were now latched to prevent them swinging forward and the back seat folded flat. A chrome horn ring replaced levers and the headlight dip switch was moved to the steering column.