For owners of 1998 Passat's with 1.8L Turbo engines, VW has extended their Power Train warranty to 8 years or 8,000 miles. They cite an the "Oil Sludge" problem. Apparently, VW is downplaying the real problem. Some defect in the engine can cause the oil pump to fail and quickly destroy the engine. It happened to my wife's car on an extended trip a couple of weeks back. We saw a "Low Oil Pressure — Stop Motor" signal come on.By the time I pulled off the road, the engine was wrecked.
The worst part is that VW knows of the defect and will only provide warranty coverage if you have had the oil changed at least at exactly every 5,000 or six months, and you have receipts with VIN number and mileage (I suspect they would find something else to complain about if we had met this requirement). Since we have the oil changed at a little service station, we're screwed.
Engine replacement is estimated at about $11,000. Some folks are luckier. They have to replace the oil pump for about $1,000, but eventually it fails again and in all likelihood eventually destroys the engine.
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