One problem related to axle shaft has been reported for the 1998 Volkswagen Passat. The most recently reported issues are listed below.
At approx. 30,000 miles, right front wheel bearing began to intermitently emit a dry, droning, whining sound. Sound became louder and more regular over the next several months. At 37,000 miles, took vehicle to dealer for diagnosis. Was informed that the right front wheel bearing was worn out. Dealer refused to repair at their expense. I don't feel that a wheel bearing should fail after just 37,000 miles. The other three wheel bearings seem to be fine. It seems to me that if just one of four bearings fails, it is reasonable to assume that bearing is deffective. I don't feel that I should be responsible for the cost of the repair.