This is an air-cooled forum but from a bit of research that I've down it seems that the New Beetle might have a bit of an oil consumption problem.
Beth of Hermosa Beach CA writes:
I have had NUMEROUS problems with my 99 'VW Beetle. Most recently (May 01'), I had a new engine installed because of an oil consumption problem. But, since the engine replacement, my vehicle has continued to consume a massive amount of oil (1 1/2 quart every 1,000 miles). VW requested I get an oil consumption test every 1,000 miles to document the oil consumption problem. Because I only average 500 miles a month, I was going into Peyton Cramer every other month.
Well, I've now had 6 oil consumption tests. Each time my car had consumed 1 1/2 quarts of oil to 2 1/2 quarts. All along I was led to believe that there was a particular someone charting my information and in charge of my situation. Finally, Ramez from Peyton Cramer VW in Torrance, CA sent my file to Scott S of the Thousand Oaks VW office who reviewed my whole file for a whole 15 minutes. His only solution was to bring my car back to the dealership's service department for MORE service. This 99' vehicle has been in the service department WAY TOO OFTEN.
My request prior to the oil consumption tests was to trade in the car for a new vehicle. But, in order for them to consider my request, they asked that I do the oil consumption tests. Well, I did, plus an additional 3 because they weren't responding.
I'd contact your local VW dealer and ask if this is a problem and if VW is doing anything about it.