Two problems related to transmission gear indicator have been reported for the 2006 Volkswagen Jetta. The most recently reported issues are listed below. Please also check out the statistics and reliability analysis of the 2006 Volkswagen Jetta based on all problems reported for the 2006 Jetta.
I was on a freeway that was merging with another freeway, and the gear lights started flashing, the transmission quit, and I couldn't accelerate to get out of other vehicles way. I was doing 10 mph, and I had to cross two lanes of traffic doing 65 mph. Nowhere to go but that. I was so scared and was really lucky that no one hit me, although they did have to hit their brakes hard and swerve to avoid me. This is something I've seen on different forums now, and everyone says it is a mechatronic unit gone bad.
2006 vw Jetta tdi with dsg automatic transmission, dual mass flywheel failing, vw dealers keep in stock because high number of failures, mechatronic unit failing when driving, vehicle will reach 3rd gear then suddenly downshift to 1st gear. Resulting in a hard jerk. Gear shift indicators on dash will start to flash, shutting off vehicle and restarting will reset unit but as soon as you get to 3rd gear problem reoccurs. Known issue with 2007 -2009 dsg transmissions vw extended warranty to 10 years or 100,000 miles on these transmissions but fail to acknowledge the issue with 2006, contacting vw will respond with only we're sorry. Also expect long delays in getting a mechatronic unit.