The distinctive VW Beetle

Volkswagen has already announced that the last of the original Beetles will roll off the production line at the factory in Puebla, Mexico, later this summer.

Now it has admitted that sales of the new Beetle model, also manufactured in Mexico, are much more sluggish than expected in the US.

The job cuts come because Volkswagen plans to reduce its output from Mexico by more than a fifth.

New generation

The rear-engined Beetle, with its distinctive rounded shape and prominent headlights, traces its origins back to 1934, when Adolf Hitler instructed designers to draw up an affordable car for the masses.

Mass production began after the second world war, and the Beetle went on to become one of the most instantly recognisable cars of the twentieth century.

Volkswagen stopped making the Beetle in Europe in 1978, but carried on production in Puebla.

Five years ago, Volkswagen introduced an updated version of the Beetle which has proved a hit with a new generation of drivers.