OK...this is a bit dated...but I think it may be applicable.
In 1977, we bought a nice little VW Dasher wagon. Momma loved that damn car even though it had a manual tranny. Functionally, it met our young family needs perfectly. Within about a year, at say...12,000 miles (I can't remember too well because it has been so long ago.), the damn think began burning oil...and lots of it. Soon, I was pouring in a quart a week! I bitched and bitched to the VW store service writers without success. They claimed it was normal. I knew better but they refused to repair or replace the motor.
Early on, we experienced another problem that turned out to be a class wide issue: The CV joint boots were being torn by stones on the highway (Most of Momma's driving was on the interstate on the way to work.). This tear let in dirt and small stones which quickly ruined the CV joint bearings. VW paid for the first two replacements on warranty...then it was up to me.
The oil burning and the never-ending CV joint replacement expenses finally forced my hand and I traded the little wagon in on a new Chevy when we got orders to Hawaii in February 1982.
On my last visit to the VW dealer just before we sold it, I discussed both problems with the lead service writer, who by chance had just given his two week notice. With no job pressure, he finally told me the truth about the VW Dasher problems I was having. He told me that VW did have two major problems with the Dasher: the engine oil consumption and the CV joint failures. He said that the two issues were major red asses for VW and that they were spending millions fixing the cars all over the country. He went on to tell me that the oil consumption was due to bad valve guides that wore out way too soon because of poor manufacturing processes. These guides had been provided by VW subcontractors and that something like 2,000,000 engines had been made with these bad valve guides. He also told me that VW had (finally) determined that the CV joint boots were too thin, making them easily susceptible to damage. Well...DUH! I could see that! American cars had then and have now much stronger, beefier CV joint boots for just that reason!
Anyway, after we sold the car, I learned of a huge class action suit against VW for the above noted reasons. By that time, I was deployed on a DDG out of Hawaii...and no longer owned the car...so I didn't care. Not receiving any notice from VW about the problems, stonewalling by the dealer and lack of follow-up most definitely ensured that I will NEVER purchase another VW car again.
FWIW, our most reliable cars by far have been a Honda Accord and an Infiniti I-30. Neither has ever used one drop of oil. The Honda went 130,000 before being totalled on I-95 by two morons behind us and the I-car has 35,000 so far without any oil usage. My Ford truck doesn't use any oil either but it only has about 11,500 miles on it. My son's Mazda doesn't use any oil either and he has about 15,000 on his car.
I don't believe your dealer...and I would sell that car ASAP.
Good Luck!