I've heard this used here in Oregon too. I have always thought it was because kids have added Vanagons to the Slug Bug game. So now folks are going one step farther and calling the Vans Bugs I am guessing. 

Julianna
541-231-4383
1991 VW Vanagon Westfalia (Ophelia)
1988 VW Vanagon Tintop (James)

> On Nov 20, 2015, at 10:21 AM, Larry Alofs <lalofs@GMAIL.COM> wrote:
> 
> Twice in the past couple of months I have heard a vanagon referred to as a
> "Bug".  As in "Nice Bug!" or "What are you going to do with those two Bugs
> parked out back?"
> 
> I was someewhat taken aback, but did not object.  Is this common usage?
> Maybe only here in the Midwest?
> 
> Larry A.