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I have a 2001 VW Beetle with automatic transmission. A few years ago it went into limp mode so we took it in for diagnostics and it came back with codes 281 & 297 for transmission speed sensor and driving speed sensor. At that time they checked the sensor connection and tested sensors. The sensors were ok. So they installed an overlaying wire for sensors. 1C0-971-661-B wiring & 1C0-971-661-C wiring. It worked for a while then went into limp mode again throwing the same 2 codes. We replaced the battery and suddenly everything worked great for about 6 months. Well the pandemic hit and I had no reason to drive it for a couple of years. The battery had died so we bought a brand new battery and took it for a drive. Well guess what ... it is in limp mode AGAIN! It basically stays in 3rd gear. When I manually put it in 1st or 2nd it is in the correct gear. When I put it into D - drive it stays in 3rd and will not shift up or down. The same 2 trouble codes 0281 & 0297 come up. I am so frustrated and sad because I love my bug! I don't know if there is any hope to fix it.

Has anyone else had this issue? If so what worked? Or any suggestions what to do now?
 

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These wiring issues, have been a known issue with a issued tech bulletin about it and VW fix was recommended, as a wiring harness overlay, (which it sounds like you had completed in the past)?

Seeing, how these wiring harness repairs have been done in the past; I would think, the next step would be to inspect the harness for damage and if you have a VW factory level scan tool, like VCDS by Ross Tech, to view live data, to confirm, the sensors are working or not.


Things, typically come down to a bad sensor or wiring issue.
 
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