HOW TO INSTALL THE TELEPHONE ADAPTER IN YOUR TOUAREG'S AUDIO PLUG IN THE NAVIGATION RADIO:
Parts/Tools Required:
TELEPHONE WIRE KIT:
1 piece 3 foot long audio only cable with 1/8" mono plug at one end and special plug that fit into the existing radio's plug connection on the other end.
1 piece 3 foot long wire with contact at one end for MUTE function, other end bare to connect to your car kit.
Wire color may vary from photo.

Click here to for details on how to purchase any of these items.
4 pieces, radio removal tools, which I now offer.

1 - car kit - I used a Nokia CARK-91US in my installation. Complete Car Kit (CARK-91US)

1 - mount - I used a KUDA mount in my installation. Purchased from this seller on eBay.

Logic and explanation
The standard radio in the Touareg is able to accept a phone audio input but the plug is not in the radio as it is on the navigation radio. So the kit is supplied with this plug. The MUTE function is in another plug shown in this photo and is marked TEL MUTE.

Here is a photo of the actual plug body. The new connector will be inserted into the empty location shown in the lower right in the plug/

Radio removal and Installation of wires in the plug and the connector in the plug
1) Insert the longest end of radio removal tools with the taper facing in towards the center of the radio into the slots shown here:

2) With all 4 tools in and locked in place, gentely pull on the tools and the radio should come out.
3) Work the radio and the two attached cables all the way out and lay the radio on a towel or blanket on the center console.
4) Remove the radio removal tools by pressing on the 4 brass tabs on the side of the radio just behind the tool slots.
5) With this procedure, it is necessary to remove the big black plug from the radio. When I did this with my car, I did not need the radio code. But you may need it for yours. I am not sure. So be sure you have the radio code before proceeding.
6) Squeezing the black tab on the bottom of the big black plug, lift the black bar at the bottom of the big black plug and pull the plug out. Note this photo is of the same plug in the navigation radio. The green connector does not exist in the standard radio. This is where you will put the new connector

7) First we will install the MUTE wire. Looking at the photos below, you will see in the first photo the way the plug looks without the MUTE wire in place:

The third hole down on the right side is where we need to plut this wire:

To put this wire in place, you need to remove the purple pin in the top of the plug:

Then insert the MUTE wire in the correct hole and replce the purple pin:

8) Now insert the new connector into the plug.
9) Push the plug back into the radio.

10) Now connect plug the audio plug into your car telephone kit and attach the MUTE wire to the mute function on your car telephone kit and you should be able to get this screen when the phone is making or receiving a call:

At this point, the radio should have muted and you should only be able to hear the telephone audio. Another interesting thing to note is that you will still hear the navigation system audio if the navigation is active. So don't be navigating to your favorite love nest and call your wife at the same time!