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sledge @ Apr 15th 2008 1:26PM
Actually, as long as they kept it under the numbers for a specialty car (think Caterham/Brabus/SL65 Black Series), they probably would not have to meet all the standards that are set for production cars.
Heck Brabus have been swapping Mercedes engines with their own for years and been quite profitable. The reason why Porsche couldn't / wouldn't want to do it would be that it would damage their brand image (most Carrera GT owners would probably not like their car being associated with a Porsche Beetle) and would not really be worth it.
On a side note, a porsche powered original beetle would kick serious ass!