One problem related to transmission slip out of gear has been reported for the 2004 Volkswagen Beetle. The most recently reported issues are listed below.
I have a 2004 vw convertible Beetle that I have had less than 2 years. Obviously I bought it used. I have taken it to the vw dealer for a recall on the airbag, drove it 5 days and light came on again. At the same time that light came back on the check engine light came on & had to replace an 0-2 sensor. Drove it another appx. 8 mo. & had to replace the water pump. The last few mo. Have been having difficulty with the transmission, it all started with it not shifting out of 3rd gear after stopping. I would have to pull to the side of the road, turn off the engine and sit and wait for at least 15 minutes, start it up and continue on my way. This is really difficult in traffic on the interstate and dangerous!! it also began to shift very hard from 2nd, to 3rd and 4th. It jerks so hard I'm amazed I don't have whiplash! anyway, I took it to the mechanic and it needs a new $6000 transmission. I really believe that vw should be responsible for replacing faulty parts. Obviously, this is an issue that they refuse to acknowledge and a dangerous safety issue. One last thing is that both my rear windows seem to be sticking, I'm afraid to roll them down. I'm not driving it now anyway, it can't safely be driven. I would appreciate your doing something about these issues. We bought the car with early withdrawal retirement money, because we needed a reliable car. Now it just sits! thank you.