Actually it’s a little bit of both. Welcome to the confusing world of the Hispanic auto market. If something is popular, they just keep making it. What you see here is basically a Mk. IV Jetta chassis with an updated drivetrain, and refreshed front and back clips to better assimilate itself with the new (at the time) Volkswagen corporate face. Although this car is from south of the border, they actually sold the car like this in Canada too, as the Jetta City model. In the Mexican market it was known as the Jetta Clasico, which later changed to it just being called the Clasico. This is one of those later models. If you’ll believe it you can still get a Mk.IV Jetta like this brand-new in Mexico.
It isn’t too weird though: In Brazil you can purcahase a Volkswagen Type 2 ( the rear-engine van popular among our peace-loving, hallucinogen-abusing, wimpy “friends” of the Hippie movement.) brand-new with a radiator mounted in the front and and water-cooled engine mounted in the back! It’s conception dates back to 1947 and was first produced in 1950! Those “crazy” Hispanic people don’t like change. Personally, I wouldn’t mind if Chevy still made 88-98 GMT400 trucks with updated drivetrains (they actually sold vehicles based off this platform up until 2000 for those not in the know)
Anyways, the whole reason behind posting this is because not many people in the U.S. get to see what other markets are selling. In Arizona we often see many strangely modified cars from down below, but occasionally you’ll see a car like this or a Ford Lobo (Mexican market F-150) and other things like that.