not much of a difference -- besides the subtle lower grille, wheels, a little nicer interior.
I remember they got rid of that silly rectangular rear badge plate/handle on the trunk after the first year.
Too bad they still have that awful yellow/orange guage lighting.
I bet the Japanese cars are looking more German. Rode in a new Accord 4 Cyl last week. Most interior cues were from the passat.
The rear seats were very uncomfortable though. And the ride is very harsh compared to stock Passat ride IMO - for rear passengers.