Knepper Bugs & More is a company in Rahden, Germany specializing in Volkswagen Beetles. The company built this VW 1303 without an air-cooled flat-four. Instead they swapped a turbocharged 2.0 L Subaru EJ20 flat-four. Power is sent to the rear wheels through a Porsche 915 five-speed manual transaxle. Knepper Bugs & More also upgraded the handling with Porsche 944 Turbo disc brakes in the front and rear. Those are covered by a Porsche Cup 2 wheels under a body painted in Marathon Blue.
Source: Knepper Bugs & More (project page)