Frankfurt/New York — Carmakers are so eager to replace less-lucrative cars with higher-margin SUVs, they’re willing to scrap iconic nameplates along the way.

Volkswagen’s (VW) newest North American model, the Taos, is perhaps the starkest example of this yet. The German carmaker made room to manufacture the compact SUV in its Mexican assembly plant by ceasing production of the Beetle, one of the most influential cars of the 20th century...

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