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Air cooled engines made where? for what?

Ok... this is probably a ridiculous "newbie" question which will undoubtedly spotlight my ignorance... but...

I'm wondering where these new VW engines are made and for what reason?

I've read (on this site) plenty advice about NOT purchasing "Mexican crate engines."

So who's making these things? Are these "real" (read: built by a facility owned by Volkswagon) Volkswagon engines? Does VW still have a plant somewhere producing air-cooled engines with "outdated" technology??

And, regardless of where or who is producing these things... why??

Granted, the "kit car" (or "replicar" if you prefer) market buys quite a few... and i'm sure there are some old beetles/busses/things out there that are still solid but need new power, but is there really enough demand to keep an "old school" engine factory in business?

As a side question, i've been told by some people that the "old school" VW Beetle was still being produced in Mexico until the release of the New Beetle. Is this true?

This all seems odd to me... like Ford still producing 1957 Mustangs and engines in one country while the rest of the world has moved on.

Thanks, in advance, for clearing up this silly curiosity of mine.

-a

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