A friend in Germany said he trusts VW even more after the scandal, because it showed their engineering cleverness. And also because they cared for their customers and gave them even better performance than the government allowed.

In general, VW has a good, somewhat inflated reputation in Germany + parts of EU. In my experience, the cars are quite solid and reliable, albeit considered a bit boring. But you can also buy a Seat or Skoda which is basically the same car with a different exterior but cheaper...

Maybe the issue is that they are different cars in the US. VW didn't have a Jetta in Germany for years. I owned a Golf MK3 convertible in the US, and I felt it was of lesser quality than similar VWs for the European market.