I have an 05 Touareg (V8, loaded) that's been perfect since I got it new, with only the routine maintenance needed (every 10K miles). Last week, I lost the serpentine belt (@ 53,000 miles), and had two "combination valves" in the pollution control system replaced while it was in. No complaints.
Before that, I had an '04 Touareg (first year it was out, V6, Loaded) that had some electronics issues, mostly with the Tire Pressure Monitoring System (TPMS). A factory note came out on it, they repositioned the antenna, and it worked pretty well after that.
I traded the '04 because some twerp in a Camry made a left turn into my rear passenger door and wheel. It scratched the paint and made a slight crease in the metal. There was also a gouge (~3" long, up to 1/4" deep) in the alloy wheel. The Toyota was totaled; the front end (bumper to engine compartment) detached, and the frame was twisted enough to call it a total.
A couple friends have Jettas, Passats, and an R32 ... all appear to be working perfectly, no unusual maintenance, no complaints with the cars at all.
The traditional problem with German electronics is that they're German electronics. German manufacturers are great with mechanical stuff, optical stuff, even woodcraft, they have some great mathematicians, musicians ... lots of great things ... but their electronics suck, they stink, they are some of the worst in the world (behind Lucas, God of Darkness ... "Why do Brits drink warm beer??? Lucas refrigerators!). I did field service work for a German company for four years. They suck, they overuse relays, they daisy-chain relays, they use some of the stupidest, ugliest, most poorly-designed circuitry ever created. Anything that is electronically good from Germany was borrowed, bought, OEM'd or stolen from somewhere else.
Back to the point, with the exception of the V10 pump deuse diesel Touareg (the 50 state diesel is rumored to be exceptional), I haven't seen or heard of any bad VWs in recent history, even considering the usually / frequently stupid German electronics.
Some folks at work have had some serial problems with their "Jap" cars (possibly made in America) ... cars is cars, there's good ones and there's bad ones from all of the manufacturers. It's just a matter of how they handle their PR.