I agree these engines are fine engines, I own one in fact, a 01
1.8T Beetle. Never a mechanical problem with the engine, but
the auto trans imploded at 4K and needed replacement. The
engine computer has been a *** since new and the car towed
for various reasons about 5 times with only 14k on the clock.
This car has been the worst car for reliablility for us that we
have ever owned. BUT I'm not being a smart *** here as I
actually do like the engine. The rest of the car is another
issue. It would be a goner if my wife didn't like it so much.
You are correct in the dealer assesment regarding oil selection.
My dealer puts in bulk Valvolene 5W-30. Needless to say they
have never changed my oil.
My nephew with a spotless Passat 1,8T wagon, 35k, always synthetic at 6mo OCI, had the sludge issue (low oil pressure) on a trip and had to abandon the vehicle at a dealer as they would not fix it. The car was still under warranty. If it were not that his brother works for VW of America and he is an attorney the
car would still be sitting 2 states away.
I think in certain models the sump is at least a quart in capacity
shy of what it should be knowing these engines are quite hard
on oil. Less than 4 quarts in a highly sophisticated turbo engine
just is plain dumb. This is a design issue.
Car dealers in the United States are IMHO not walking hand in
hand with the manufacturers. Or the customers for that matter.
Craig