Volkswagen would be wise to try and tap into any new market they can. With such an iconic car as the Beetle, changing and improving upon it is just another step in the evolution of the bug. More people are becoming aware the environment and this is something that would sell to these new customers.
I think that it would be a great way for Volkswagen to bring excitement back to their brand and also show off some of the classics that maybe younger people have not seen before. Any time you can turn your proudct into a new market I think it can only be positive.
Volkswagen have a reputation for making quality vehicles which has lasted for years. What they don't have a reputation for, and haven't for some time, is making cheap cars. This can act to their advantage. As customers are used to paying more for their product, if Volkswagen take this opportunity to move into a more unusual market, they'll be able to make it profitable.
With the size and the shape of the Beetle I think it would be a great car to become electric. I think Volkswagen will see an increase in profits almost immediately. I think that would sell a lot better than the Prius or other electric cars considering it already has a very large following.