Protection wise it does a little but really bugger all. It's more of a splash guard than anything to stop water etc getting in.
Dunno how much VW will charge you for one but I just had mine cut and removed and an aluminium skid plate fabricated and installed. Provides some proper protection for my sump etc.
It's pretty similar to this:
http://www.dieselgeek.com/servlet/Detail?no=358
Cheers,
Trent
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