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So here's the official VW Canada explanation (probably applies to US as well.) VW as well as other auto companies manufacturing vehicles in the U.S. have deliberately set up their vehicle speedometer displays to read high. The degree to which the speedo reads high varies by manufacturer. In the 2012 to 2014 Passat models the reading is 7.6% high. That has been changed to 4% high in the 2015 year. However, the control module for the odometer is calibrated differently and gives a very accurate reading of distance travelled. VW understood the concern about potential earlier expiration of warranty due to higher readings. This also means that mpg or liters per hundred km travelled readings are accurate. The reason for the higher speedo readings is simply to make people think they are going faster than they really are with a net effect of slower, hence safer traffic. Interesting! And NO, there is no way to adjust the speedo reading.
I can live with that. Still love the car!!
Tor
I heard something like that a while back. And it sounds plausible to me, given the fact that whenever I passed by one of those police radar trailers that told me my speed in flashing numbers I found I was going 2-3 MPH slower than what my speedo said it was. Hence, 25 MPH indicated was actually 22 or 23 MPH, according to the cops' radar. I noticed this phenomenon on my B5 Passat a number of times, but it really doesn't bother me all that much. No doubt I'll notice the same thing with my B7.
 
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