One problem related to engine exhaust system has been reported for the 2003 Volkswagen Beetle. The most recently reported issues are listed below.
As I turned off the 4 lane highway onto our local street I heard a loud noise, I thought I had blown a tire. I pulled into our driveway, about 30 yards further, and saw nothing. Fortunately, we have a Nissan dealership whose parking lot has an entry across the street from our driveway. I drove to them very slowly as car was making terribly noises. I also found a broken off bolt about 1/2 inch diameter in the road just before our driveway and took it to Nissan. Nissan found that both engine mounts were broken. They felt one had broken and the weight of the engine falling had broken the second. My engine was "sitting on top on my exhaust" if this had happened on a high speed road -- the highway I had just turned off of --- I may have caused a serious accident with fatalities. I have reported to both my local vw dealership where the car has been serviced as well as the vw national office. Neither would pay for my $800 repair, both said there were no recalls on my model. I maintain my car and feel this is terrible that something like this can happen. If the bolts are broken --which is what Nissan says/ not rusted --- then the bolts are defective!!!! it was so fortunate that the engine dropped when it did and not on a highway!!!.