The reason is that with a stretched out 5th gear people tend to keep the car in 5th for freeway use, all the time at 55-75mph say. The car is running at a much lower rpm, as such the fan rpms are not keeped up. With a stock fan shroud there is danger in overheating the motor because of this.
Gene berg said it best and I quote from his web site.
"So, if ours was so wonderful, why did we stop making it for so long? Two basic reasons. It took 5 years to sell 112 kits at a price of $742. Secondly, what we continually heard and still hear from many people we talk to today that want a 5 speed today, is that they are doing it to get an "overdrive". The problem is that "all" VW's ever made already have an overdrive in 4th gear. In my opinion, people who try to install a even higher than stock final drive for an air cooled VW are crazy. Our tests have proved conclusively over and over again that a higher overdrive causes the engine to get "less" mileage, and runs much hotter because the fan turns slower, which obviously shortens the life of the engine. Few people stop to think about what is actually happening when a higher overdrive is installed. You are giving the leverage to the car and taking it away from the engine. Like moving the teeter-totter leverage out to the heavy person's side rather than to the light person's side. Thus, taking more HP to drive the car the same speed regardless of the size of the VW engine. More HP is more heat, less mileage and a shorter life. I tried a bigger pulley to speed the fan up again. However, it took more HP, which caused as much heat as it removed. I have found nothing to cure these problems so simply stay with the factory overdrive 4th gear in the 5th location.
Maybe VW was smarter than many give them credit for. After all, if simply installing a higher overdrive would provide more mileage, longer life and better cooling you would think the first people to do so would be the VW factory. See GB 801-GEARING and GB 801-COOLING for more information.
I designed the 5 speed so people could have a close ratio 4 speed gear box utilizing and keeping the stock overdrive gear in the 5th gear position. Naturally, racers use them with all 5 close ratio race gears. Yes, with our Berg shifter you can speed shift all of the forward gears, even 5th."
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