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Free online service manual for the 2007 New Beetle convertible:

 

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Turn Signals, High and Low Beam, Headlamp Dimmer/Flasher and Parking Light Switches, 12-Pin Connector - C -

 

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We have seen issues with the switch in the combo lever; which controls the turn signal, cruise and high/low beam headlight modes. In my case, the blue light in the speedo cluster; was on but no power to the headlight/bulbs. I confirmed this, using a circuit tester; my bulbs were good but no power (switched bulbs to low beam position, no power at the high beam socket) but after spraying contact cleaner, into the switch, inside the steering column, it started working again!

So, more testing maybe required and there is also a known issue, where the plug holder for the headlights, on the later models 2006+; causes connection issues, as they warp from heat, not allowing a good connection.

Here is a video; going over the fix for that: (may not apply; if your low beams are working fine)?


As to your multifunction switch/stalk replacement; what brand was it and was it new or used?
 

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I don't know if the new part is defective but it would be nice to test, the new/old switches to confirm?

Is the blue high beam indicator light on; when activated, in the speedo cluster?
 

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