Well, I just picked-up my Jetta City Friday. It has less than 500km on it, but so far it seems like a well built car with no rattles or strange noises and everything is working properly. I've read some of the comments regarding the Gold City and it's less than stellar reputation as a Brazilian built car. While that may be true, I truly believe that the Jetta will prove to be a more reliable car than the Golf since it is built in Mexico. I don't know how long the Golf has been built in Brazil, but the Jetta has been around Mexico since 1990, when VW moved the plant from the U.S. to south of the border. As a matter of fact, VW was able to price it close to $2,0000 less than the previous year's model because of that move.
As for the Jetta/Golf City program, stories and rumors are flying around as to why VW did this and I don't think that anyone not involved with VW directly has the real answer. But in my opinion, this is a gutsy move by VW and may very well help them reclaim a segment of the market that they were losing.
Like others on this board, I truly feel for the VW owners who bought the same car for $8 - $12k more just 2 years ago and it may very well hurt the resale value of their vehicles, especially if it's a 2.0 L. gas engine.
On the other hand, the City Jetta/Golf program will enable a lot of people to purchase a reliable and fun car with all the trimmings without having to take out a second mortgage on the house. In my opinion, a fully loaded City Jetta, manual transmission, for about $24k, taxes and all duties and surcharges included, is one good deal and that is what really clinched it for me.
What I am worried about is how this will affect the sales of the new Jetta. I think VW has outsmarted themselves with the City Jetta's low MSRP and a very successful marketing/publicity campaign. There were 5 customers looking at new Jettas/Golf/Eos at the dealership the day I picked up my car. 2 of them came over to comment on how good my "used" Jetta looked. When I told them that it was a 2007 City Jetta, they looked at it and saw the badging on the trunk lid and immediately remembered the television commercials and the prices. At least one of them was now considering taking a serious look at it. If more and more potential new Jetta buyers react in the same way, I'm not sure how the MK V will do. It's almost reminiscent of the "new Coke" vs. "classic Coke" era.