The Type 2 Bus that is still being manufactured in Brazil is based on the second generation Type 2 Bus, which is commonly known as the bay window model (the first generation had a split front windscreen). There, the model is named the Kombi.
The reason behind the end of the Type 2 Bus’ production is that the company fears that the brand might end up being considered as a “brand with the old cars.” The company did not reveal which model will the plant replace after this but rumour has it that it will most probably be a front-engined model.
It seems that the execs at Volkswagen are worried over the detrimental effects that production of old, classic models have on the brand. However, the company has been producing such cars for quite a while (the original Beetle ended production in 2003 in Mexico) and it shows that they are capable of making durable cars. I feel that it is such a shame that the Type 2 Bus has to go because such models will give the brand a diversified range of models.