1967 Beetle Owner and Reader Beth Leverman, of Dallas, Texas, submitted the following method for Bushing Removal and Installation using tools at hand. Thank you, Beth for working this up and for the photos!
To remove the old 12 Volt Starter Bushing, tap the old Bushing using a 7/16ths tap
If the Bushing will not remove by pulling on the threaded tap, install a long bolt of the same threads, place vise grips at the bolt head and use a hammer to tap on the nether side of the vise grips. This should loosen and remove the Bushing.
To install a fresh Bushing, first slightly chamfer the edge of the Bushing which will be presented to the opening where it will reside.
Grease the outside of the Bushing to facilitate installation.
Use a long 3/8ths inch bolt with a long shoulder but with only enough threaded portion to screw on a nut and then to slide the Bushing onto the exposed threads.
Or, you can use a completely threaded bolt and double-nut the bolt to achieve the desired installation length.
Install the Bushing onto the exposed threads and place the Bushing at the Bushing opening in the transmission.
Tap the bolt head to start the Bushing into the hole. Continue until the Bushing has been installed flush with the hole’s edge.