The electrical connection between the steering wheel and the rest of the car has failed, thus disabling the stereo controls, cruise control, display/menu buttons, horn, and most importantly airbag. It's called a clock-spring.

Not covered under warranty. $500+ to fix. Now driving car without airbag or horn.

My issue is this: technology that allows steering wheels to spin, yet remain connected to enable airbag, horn, and steering wheel mounted controls to function has existed for a long time. My 2005 Jetta has a similar configuration and at 242k miles, I've never had this issue on it, or any other brand of car with airbags and steering wheel controls or even heard of this happening.

Why would this piece fail at 3 years old? Why won't they cover it? Do they realize they could be liable if somebody wrecks and gets hurt due to airbag or horn non-function?

This is unacceptable. Especially from a company like VW.

A major, safety related electrical failure through no misuse or fault of the owner on a 3 year old car with under 40k miles strains the limits of credibility. Pile on with them wanting me to pay for the repair. I should note that the dealer DOES have clocksprings in stock. That is a huge red flag IMO. I'm not the first with this issue by far.

I hope they make it right.