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You might start with scanning the car with a VW scan tool; like VCDS by Ross Tech, post any codes you are getting. As noted valve body related issues are common (sticking solenoids; bad wiring harnesses, etc) but sometimes, a bad shifter selector assembly, failed wiring harness or one of the various sensors on the trans, can cause problems as well. Let us know, what your scan reveals, post any codes you find and we can go from there. Thanks.
 

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The 01M is definitely a four (e.g. 4) speed transmission; here is the basic info:


The 01M is particularly known for problems and issues with the valve body.

As to your auto dealer issues and the defective trans; I would seek legal counsel and see what your used car consumer protection or lemon laws are. Armed with that info; you could try to negotiate a refund, buyback or other resolution, you find acceptable. If you do not get anywhere; you might see, if is worth going to court to try to get the situation cleared up or it may not be worth the cost or hassle.

If you decide to fix the problem; please post any trouble codes you are getting and we can see if any maybe related to your shifting problem. Thanks.
 
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