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Is there any difference between the brake light switch that goes for $8.95 at my local 'bug barn', and the one that the local VW dealer wants to charge close to $70.00 for - other than $60.00?

Both are listed under the same product code.

Are they all made in China these days?

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Is there any difference?

Probably not.

Are they all made in China these days?

Almost, although there are still some NOS versions kicking around which were made in Germany or Brazil. You have to look for them, though. I gave up and just converted my brake light switch to a 1937-54 Chevy pickup mechanical version. Works every time, is easy to install and should last longer than me - and it's available from NAPA.
I go through brake light switches on a fairly regular basis. The last one that I replaced was from Japan and the current one was made in China so I don't expect it to work really long. When I showed the last one, using it as a sample, to the Advance Auto dude he said it was for a 1998 Ford Escort. Works for me....for a while anyway.
All of those hydraulically operated switches work great when you put them in and, yes, the VW, Volvo, Saab, MG, Fiat and a bunch of others are interchangeable, depending on year. All you have to watch is the thread size and pitch. I can't remember what it is, but it is metric.

The trouble with all of them which are procured from aftermarket shops is that they're all junk after 18 mos.
I am sure mine will fail as soon as I write this! I have the original ones Greg at Vintage supplied back in 2002. I do however change my brake and clutch fluid every two years as recommended by, well, everybody! I really think that is the reason why mine are still good, as well as masters, slave, calipers etc... I did have to replace my rear wheel cylinders though, they leaked.
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