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About ten months ago DWs 2007 VW EOS 2.0L turbo-charged...

Well there is the start of the problem.

...started consuming oil at a quart (of synthetic) every 1,600 miles. The car has 84,000 miles. Car was purchased used in 2010 and consumed very little oil until about 10 months ago

There is no oil on floor under the car. I see no exhaust smoke.

Where is the oil going?

A few possibilities. Look at the coolant in the low pressure reservoir. Does it look like foamy chocolate milk or muddy water? Head gasket leak. Oil is mixing with coolant, coolant is mixing with oil. You can also go to any shop and ask for a "hydrocarbon" test on the coolant. Most shops (not a dealer) will do it for free. If you have hydrocarbon in your coolant, head gasket leak.

You could be leaking oil through seals in the internals of the engine. Most of this would burn off at this rate. As another poster noted, if you do a drive by or have someone follow behind, a hard acceleration followed by lifting completely off the accelerator may result in some white or blue tinged smoke. This is also a bad sign.

You can also lay down at the front of the car with a flashlight. Is there any sign of oil on the underside (don't do it while the engine is hot). The oil pan is typically distinctive on a car, it is at the low part of the engine bay underside and typically flat. Run your finger over it. Covered in greasy black yeck that is more than a very thin coating thick? You're leaking oil from an external seal (that isn't terrible).

The VW dealer tells me this rate of oil consumption is OK - maybe not "normal" but doesn't indicate a problem.

What do you think?

You've been told right. Even if there is a slight problem, the cost of a quart of oil every 1,600 miles is a lot cheaper than an engine rebuild at this point. If the consumption gets worse - and you start moving to one quart per 1,000 miles or less, you have a growing problem. At 500 miles per quart congrats, you now have a TDI EOS until the fuel injectors foul, the head gasket completely gives up, or the catalytic converter has a full on meltdown from oil contamination. Now expensive.

My snark above with, there is the problem, is VWs aren't exactly reliable (someone will insert outrage at this comment here) and their propensity to eat ignition coils, have electrical issues, and burn oil is rather well documented.
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