One problem related to air conditioner has been reported for the 1998 Volkswagen New Beetle. The most recently reported issues are listed below.
The window switches have broken twice. They were repaired under warranty the first time. I have not had them replaced a second time, as the warranty had expired due to mileage (even though the switches broke twice within a year of purchase of the vehicle). I do not plan on having the switches replaced again, as I am convinced that they will simply break again. I have seen similar complaints on this website, so I wanted to submit further evidence that there may be a problem with the switches. The air conditioner stopped working about 2 years after purchase of the vehicle. Upon inspection by an independent service station, a leak in the air compressor valve was diagnosed. The mechanic stated that this was unusual and that there did not appear to be any trauma to the unit. I have contacted Volkswagen regarding this problem, but am not optimistic about a resolution, due to their response to the high mileage on the car which negates the warranty. As with the switches I have seen similar complaints on this website and wanted to offer further evidence.