Metallic paint (also sometimes pearl-effect) contains metal flakes in it (like glitter) to give it more of a sheen than what regular paint has. Mainly, it's harder to apply right on a car, due to the direction the panels are painted and how the metallic lays on the surface. It takes more work to make sure all of the paint color on the panels looks right, and not mish-mashed.
Here in North America, VW offers metallic paint as a no-cost option (I believe they did charge for it at one point). Not sure why only here, and that they still charge everywhere else for it.
-Des
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