Major changes were introduced in the 1967 Volkswagen Karmann Ghia models, with the 44 bhp 1493 cc motor giving a useful increase in power. It was accompanied by front disc and rear drum dual circuit brakes, and a 12-volt electrical system at last. The rear tread was widened and a sway bar included with softer rear springs. Vented wheels were finished with flatter hubcaps.

The dashboard was now simulated woodgrain and redesigned with a large speedometer in the center and knee bolsters underneath. Fresh air controls were improved and the door lock buttons were moved to the top of the door. The dash had a small Ghia script in the center. Front seats were curved for better support, and backrests could be released by a button hear the top. A rear window defroster was offered on Coupes.

Despite all the improvements, sales declined with 19,406 Coupes built and 4183 Convertibles. Prices for the 1967 Karmann Ghia remained the same at $2250 for the Coupe and $2445 for the Convertible.

Exterior and interior combinations were simplified for a change, after six years of extreme complications. There were now nine exterior colors for both models, and the same number of interior colors in both cloth and leatherette. Castillian Yellow, Black, Neptune Blue, Vulcan Grey, Lotus White, Bermuda Blue, Roulette Green, Cherry Red and Savannah Beige. Cloth interiors were houndstooth pattern, and both cloth and leatherette interiors paired with exterior colors.