The inimitable VW Beetle is losing all his races and destined for the scrap heap until mechanic Hank takes him over and gives him a new lease of life. Soon, Herbie is winning again, to the fury of his previous owner, who builds a menacing black bug to challenge Herbie to the ultimate race.

Down-on-his-luck race car driver Jim Douglas teams up with a little VW Bug that has a mind of its own, not realizing Herbie's worth until a sneaky rival plots to steal him.