For 1978, the standard Beetle was no longer available in the U.S., though Volkswagen did introduce an upscale, limited-edition Champagne Edition II, which was a Beetle Convertible equipped with burled elm trim on the dashboard, ermine upholstery, a quartz clock, and a Blaupunkt stereo system. It came with either metallic blue or metallic red exterior paint.

Power for the Champagne Edition II was provided by an air-cooled, rear-mounted, fuel-injected four-cylinder engine that generated 58 horsepower. A four-speed manual transmission, dual braking system, four-wheel independent suspension, and flow-through ventilation system were also part of the package.