VW Sales Sputter Despite Beetle Craze

German auto maker Volkswagen said Monday that its worldwide monthly unit sales fell for the first time in three years, even as the redesigned Beetle helped North American sales surge about 48% to 23,800.

VW said its January sales fell 3% to 320,500 from January 1997.

But the company also said its 1997 fourth-quarter profit surged 238% to $278 million, boosted by the success of updated models, as it canceled plans to sell 3 million new shares to investors.

VW is relying on the Beetle to help boost sales.

The new Beetle goes on sale in the U.S. this week, with many dealers saying they’re already sold out.

The update to the Beetle, last sold in the U.S. in 1977, caused a stir at its debut at the Detroit auto show in January. Dealers were hit with advance orders for the small car, which costs $15,200.

“It’s a big deal,” said Eric Ryan, general sales manager at Suburban Volkswagen in the Detroit suburb of Troy, Mich., where the Beetle has sold out through June or July. The dealership doesn’t expect its first Beetle to arrive until month’s end.

About one-third of the 600 U.S. Volkswagen dealers are expected to receive the cars by the end of this week, with about half getting the cars in stock by the end of next week. All dealers are set to have the Beetle by the end of March.

The Beetle, a redesigned version of the car that debuted in 1938, is built in Puebla, Mexico. Annual North American sales are expected to total 50,000.