One problem related to software has been reported for the 2007 Volkswagen Passat. The most recently reported issues are listed below. Please also check out the statistics and reliability analysis of the 2007 Volkswagen Passat based on all problems reported for the 2007 Passat.
In below freezing weather, I was trying to leave my child's daycare. When the key is inserted properly into the ignition, the car beeps and presents a warning "steering column lock defective!" it would not start for 45 minutes - just kept turning over and immediately dieing (lost spark, presumably, as part of the immobilization system). Took it to the dealership and they immediately recognized the problem and joking sarcastically implying that this happens all the time - the stalling at startup is a direct result of the steering column lock problem. The entire steering column has to be replaced along with a new control module (around $200 in parts) along with 4 hours of labor (quoted around $375 for me). This problem is widely reported on Passat message boards with initial costs being as high as $1,900 until vw of America recently discovered a more cost effective way to fix the issue. Also, vw of ireland has acknowledged this as a software defect (see irish times article from 11/4/2009 entitled "staring problems with a vw Passat"). There are reports that vw of canada are repairing this for free on out of warrantied vehicles as well. How many have to fail in America before it's a recall? wouldn't a computer fault keeping a car from starting be a safety issue? what happens if the module fails while driving - either the car determining the key isn't correct would stop the engine, or if the steering column does lock while driving at highway speeds?.