Designed when Nazi Germany was about to invade Europe, the Beetle has survived many decades and reinventions.
The EC has been raising the pressure on VW to compensate owners of rigged cars in Europe.
Another tightening of EPA standards this year could trip up automakers.
In late 2015, Volkswagen admitted to installing the software in more than 11 million cars globally.
The U.S. has sued VW for $46 billion for violating environmental laws.
The German car maker has still not decided what to offer vehicle owners after emissions scandal.
The company announced new moves in a bid to recover from the debacle.
Volkswagen declined to comment on the details of either newspaper report.