Volkswagen has always been garbage, long before any "late stage capitalism" influences. They're even worse than American cars (well, Chrysler is about as bad as VW). At least American companies embraced influences from Japan starting in the mid-70's, with Ford and GM partnering with Japanese companies, bringing some of the quality influences in from them.

I've worked on most brands since about 1975, VW has never changed quality. There's a reason VW is a meme in the repair biz - their electrics are so bad they always have a light out/dim. Similar to Chrysler in this way - they market shiny/features, but the systems are poorly designed.

Oddly Honda and Toyota don't have these issues, even today.