If the car is in its first year and with that amount of damage I would reject it and get a new replacement.
I don't think he will get away with rejecting a car that's been involved in an accident. It's hardly VW fault is it? 
Hehe, I should have been clear, during the first year or a new car insurance companies usually replace the car for a new one if the repair costs are higher than a certain percentage of the actual value.
I would just reject the insurance valuation and request it be written off.
Will the car ever be repaired like new looking at the amount of damage it's sustained?
Again the picture shows a very dirty repair centre, it is a Volkswagen dealership who is doing the repairs?