This temperature sensor was used on both diesel and gasoline engines.
On Water Boxer (WBX) engines, it was used solely to transmit coolant temperature to the dashboard gauge.
On diesel engines, it was used for the coolant and oil temperature gauges and to transmit the temperature to the glow plug.
Note: The color marking is a Volkswagen reference, as it was applied by Volkswagen when leaving the factory. The switch listed here meets Volkswagen specifications, where the color or color combination does not necessarily have to match the actual color of the switch.
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