> the engine, if it is the Canadian VW rebuild, I have heard numerous > probs concerning these rebuilds from VW Canada. The shop wants $5400 and I can't comment on the tranny, but my '88 Westy had a full Cdn factory rebuild, engine and transmission, at 166K due to leaking heads and blown gears in the tranny (previous owner, but I have all receipts). It is now at 336K kms with no signs of coolant leaks whatsoever, and engine runs well. Compression is a bit low but even at around 130, but I attribute this to the PO leaving it a bit long between oil changes (12,000km), and often using cheap 10w30 oil. It burns little oil - about 3/4 of litre every 6000km when I now change the oil, using Mobil 1 15w50. (which helped noisy lifters a lot, btw). In case you don't have papers proving the new engine, mine has stickers on the heads and case stating VW Canada rebuild.
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