MEXICO CITY (AP) — The Beetle is dead. Long live the Beetle.

The modern edition of the iconic Volkswagen model is set to cease production Wednesday, but people in Cuautepec on the outskirts of Mexico City still rely on the original no-frills version, praising it for its affordability, reparability and, most of all, its dexterity at handling the district's steep streets.

High above the capital, where the notorious smog turns the surrounding hills into hazy silhouettes, the old-model compacts are popularly used as informal taxis for a place that lacks public transportation. The sputtering, bulbo...