MY VW Beetle will not run faster than 32000 RPM: in any gear and also neutral. I have even reset the computer and it did not help. I see that it has to both the Jetta and the Beetle 2 ltr. engine.
If there is an active fault detected by the PCM, the rev limiter may be reduce to protect the engine. Is the check engine light on?
That makes no sense at all.
Is it a diesel? If so 3200 rpm may just be the correct maximum. I’m thinking you meant 3200 because I’ve never even seen a tachometer that even goes to 32000 for any automotive engine.
Another possibility is a clogged catalytic converter.