The electrical portion of the ignition switch assembly can fail and cause the headlights and windshield wipers to stop working. This may increase the risk of a crash, especially in rainy or snowy weather. Dealers will replace the electrical part of the ignition switch assembly.
 
Recalls
Recalls are issued for cars with safety-related defects or problems
1996 Volkswagen Passat
Volkswagen Recalls 1996 Passat Models Due to Failed Ignition Switch Assembly
Electrical & Lights, November 20, 2002