I recently took my 2004 Passat in for a recall related to the heated seats; I noticed at the first opportunity to use the heated seat on the passenger side, it didn't work anymore. I rescheduled with the dealer and they tell me the heater needs to be replaced - fortunately, I'm still under warranty. They indicated the cost for this unit is in the $1,100 range which I find outrageous - is that true?
This sounds about right, actually. Lucky thing you are still in warranty. Heated seats involve a rather complex mechanism plus removal of the seat to access them.
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