Volkswagen marked 18 years of increased sales in 1967, selling 1,921,013 vehicles worldwide. U.S. Beetle sales climbed to 320,692 units with 6349 Cabriolets, but the company’s share of the import market dropped to 57 percent as GM used Buick to sell German Opels and Chrysler bought Britain’s Rootes group, releasing some Hillman and Sunbeam models on America.

But the big news was the 1500 Beetle, powered by the 53 bhp 1493 cc engine, which was offered in addition to the 40 bhp, 1285cc 1300 unit. Sealed beam headlights replaced the old sloping variety but the old fashioned bumpers with loop over riders remained. The rear suspension gained an equalizer spring (aka Z-bar), to assist the torsion bars when under load and move more roll control to the vehicle's front, ultimately to aid handling. US Beetles also gained a dual circuit braking system and a 12-volt electrical system, but it appears to have been phased in on the 1500 model gradually in October. Wipers now had 2-speed motors.

Prices increased with the 1967 Deluxe Beetle now $1639, Sunroof Beetle $1729, and Cabriolet remaining at $2075.