One problem related to transmission not go into gear has been reported for the 1998 Volkswagen Beetle. The most recently reported issues are listed below.
Battery problem. I stopped at signal and when I restarted the engine stopped and I was almost rear end. The abs and brake lights came on. The car was towed. Apparently the battery was falling out of the car at 13,000 miles. A few months later I heard a noise and slipping within the transmission. As it turned out, engine coolant had leaked into the transmission and a rebuilt was put in. Within a few weeks after the rebuilt was put in, it was making some noise and it had intermittent lurching. I complained to vw of America and the dealership. They took care of the noise and said they would be unable to help with the lurch problem. I was in an accident a month and a half after getting the rebuilt. I went into a pole sideways. I had an independent transmission specialist test drive it after the car was repaired. He reported an unusually long pause for engagemet. I believe that when I was in a roll forward motion and would put my foot to the gas, it would not engage properly and lurched. The reason it was intermittent , is due to the fact that sometimes when you would be in a rollforward motion it would be in gear and not lurch. If it was not in gear due to the long pause, you would get a lurching movement. My first transmission never had this problem. There is a potential design flaw with this transmission. When I was talking to the service manager at commonwealth, with my first transmission, he had stated they were having problems with the jetta transmissions.