1999 was a changeover year for Volkswagen's sporty two-door GTI, with one of the previous year's models, the GTI VR6, still on sale for several months, and a redesigned GTI, available in two new trim packages, introduced later in the model year. The next-generation GTIs, called the GLS and the GLX, were slightly larger than previous GTI models, with updated  engines and interiors and more standard features.

The carryover GTI VR6 came with a 172-horsepower, 2.8-liter double-overhead-cam V6 engine that was linked to a five-speed manual transmission. An automatic transmission was not available. Standard equipment included bucket sport seats, a power sunroof, air conditioning, dual airbags, anti-lock brakes, alloy wheels, traction control, an anti-theft alarm system, cruise control and a tilt steering column. Leather seats were optional.

The new GTI GLS came with an updated 115-hp, 2.0-liter 4-cylinder engine and a long list of standard equipment, including air conditioning, a power sunroof, power windows, power door locks, dual airbags, cruise control, a tilt/telescopic steering wheel, and anti-lock brakes. Leather seats and a CD player were among the options.

The higher-end GLX trim package upped the power ante with a 2.8-liter six-cylinder engine that pumped out 174 horsepower. The only transmission available with the GLX was a five-speed manual. In addition to the standard features available in the GLS, the GLX added leather seats and traction control, while a CD player was optional.

Drivers were impressed with the GTI's handling, smoothness over the road, comfort, and roominess, but many drivers noted that once the car hit 60k to 80k miles, numerous problems appeared in the form of expensive engine repairs as well as a deterioration of such elements as windows, cup holders, and the electrical system.