> this was VW's first attemt at the "luxury car " market.
> a gasoline based heater (Eberspacher BN-4) was standard equipment

Actually it was a BA4, not a BN4 - a heater which is a direct cousin of the
BA6 used in Busses and Vanagons (same electronics, differently shaped
combustion chamber, many interchangeable parts). The commercial failure of
the Type 4 was possibly due to in part the fact that U.S. luxury car buyers
generally expected air conditioning, power steering, a more maintenance-free
design (i.e. valve adjustments, pushrod tube replacement, etc.) and other
features that the Type 4's lacked (not to mention a more prestigious name on
the hood).  The Type 4 was neither a true luxury car nor a sports car,
although it is today somewhat of a rarity.  I've also heard it called "the
worst car Volkswagen ever made," although I can think of a few other VW
models that might tie for that title (ducking flames now :-)   Of course the
Type 4's engine design lived long after the Type 4 was put to rest, not only
in the Bus and Vanagon thru 1983 but also in the Porsche 914.

- Ron Salmon
  The Bus Depot
 http://www.busdepot.com