I've driven those type 2s; they're a common rental van in Mexico.   I knew
they were water cooled because I saw the radiator up front.   Otherwise
they look like your average late-seventies bus, except new.    They sound
like the old air-cooled engines, too, but they seem to have alot more
power.   It's really great to see so many bugs and buses on the road down
there, probably the commonest vehicles you see.   
 
--Evan