While the Beetle did not originally sell well in the USA during the 1950s due to Volkswagen's Nazi origins, its popularity eventually took off in the late 60s and 70s, before American production ceased in 1979.
Over the years, the Beetle became something of a cultural icon.
Volkswagen said two special Beetle models will be offered during the last model year - Final Edition SE and Final Edition SEL.
Bela Barenyi, an 18-year-old Hungarian student, submitted a chassis design for a "Volkswagen" in 1925 and is recognised as designing the basic VW Beetle. The model, which Volkswagen formally referred to as "Type 1", seeped into mainstream culture though films such as Disney's The Love Bug and a memorable cameo in Woody Allen's Sleeper.
Announcing the end of the Beetle, Volkswagen of America head Hinrich Woebcken there were no plans to replace as the company ramped up its electrification strategy - but he didn't rule it out altogether.
Volkswagen revived the "New Beetle" in the United States in 1997.
"I would also say, 'Never say never, '" he said in the statement. There will also be standard extra chrome, new wheels and three-colour ambient lighting inside.
Final Edition models are available only in Safari Uni (which started life as Harvest Moon Beige on the original New Beetle) and Stonewashed Blue (recently featured on the Beetle Denim).
It came after authorities cracked down on Volkswagen over the installation of so-called "defeat devices" into 11 million cars worldwide to fool regulatory emissions tests.