The German company’s hyped reboot of its iconic vintage van has been stunted by a luxury price tag, Trump’s trade war and an embarrassing recall.

In the 1960s, the bus and the Beetle helped Volkswagen enjoy rapid growth. U.S. sales peaked at almost 570,000 in 1970, more than a third of the brand’s global total.

The Volkswagen Beetle is one of the most iconic vehicles in post-war German automotive history. The models with the split rear window – commonly known as “Brezelkäfer” – were produced from 1945 until ...