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Just spent >$2000 with an independent German car specialist garage to have a VW Jetta (99 Wolfsburg edition, automatic transmission) repaired to fix an ignition problem (bad battery), significant oil leak (engine unmounted, new gaskets) and non-functional AC (compressor replaced).

Driving the car off the lot, the transmission was revving high, gave a jerky transition from 2nd --> 3rd and would not shift to 4th even at high speed, coasting conditions. This problem was not present prior to service. Dash also has an illuminated engine check light. Immediately returned the car to the shop for further checks. Mechanic suggested problem may have arisen from a) introduction of water from steam cleaning engine, or b) a misalignment during motor reassembly. Promised to investigate and fix free of charge.

So far, problem remains unsolved. Engine check fault can not be located nor reset. Not sure if he has run full diagnostics on the Transmission Control Module.

Is it likely the car is locked into Emergency Running Mode because of a Drive (D) gear problem ? Any advice on how this came about (misalignment, incorrect sensor connection/settings) and how to proceed from here ?

I'm willing to give the garage the benefit of the doubt and another shot at trying to get this fixed. They appear  open and genuine but at the same time I don't want to get suckered into a perpetual "let's-replace-this-part-and-see-what-happens" situation, especially if they start to charge for parts+labor.

Any helpful comments much appreciated.
Thanks.

(Fiscally constrained) VW owner    

HELLO I HAD SAME PROBLEM WITH MY 98 JETTA 2.0 L,AUTOMATIC.WENT TO DELERSHIP SPENT $100 TO RUN DIAGNOSTIC TEST ON TRANS,THEY FOUND NOTHING,THEY DO NO SHHHHHHHHHHHHH,ANY WAY I MOSTLY DO MY CARS MYSELF,GO TO ANY JUNK YARD BUY USED ECU-ELECTRONIC CONTROL UNIT,LOCATE IT UNDER L-REAR SEAT,EASE TO CHANGE IT 2 BOLTS ON IT PLUS THE CONNECTOR.NO COMPUTER NEEDED MEANING RESAT OR SO,AFTER YOU CHANGEIT GO TO NEAREST VW DEALER AND BUY TRANS FLUID,  3-Q,NOLESS OR MORE 3-Q ONLY GOUSE TO YOU TRANS,GO TO NEAREST AUTO ZONE AND BUY NEW GASCET FILTER,BUT BEFORE DO THE FLUSH VERY IMPORTANT,YOU PROBLEM SHOLD BE DONE.......THE CHECK ENGINE ON ----------FORGET ABAUT.