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the timing chain is located in front of the motor where the fan keeps the car cool, it not the timing chain becuase if that was the issue the motor would not run and may not even turn over, timing chain in the older cars where made with steel chain, now days its just rubber, and it works under the same purpose.
the plate in the transmission maybe broken, gear for the rear verse
broken, teeth maybe striped off, or the band in the transmission out of alinment or broken band, no one will know until some one takes it apart.,
you could remove the transmission pan inspect the linkage, bands, plates, check make sure theres is no metal pieces in the bottom of the transmission pan, than put new gasket and new transmission fluid in it, also put slick 50 or product that may help transmissions with alot of mileage on them to work until you can afford to fix the transmission.
If it is an automatic transmission, it could be low transmission fluid. It could be a broken CV joint on one of the drive axles. It could be a broken transmission linkage, but not likely.
There is something you can try remove transmission pan replace filter and fluid if that does not solve your problem replaceing or rebuilding your transmission are your options. if you are lucky enough to be loosing lots of transmission fluid now you may only have a broken transmission line, Let me know if that is the case and I will instruct tou how to fix it
check the switch first to make sure you don;t have a broken or partly broken wire on the transmission connection and check for cracked vacume lines as well
The slipping could be low fluid. If you have an automatic, You didn't mention the type transmission, check the fluid and add if needed. If you have a standard you need to get to the check plug under the vehicle. You check that level by removing the plug and sticking your finger in the hole. The fluid should be to up to the bottom of the check hole. The transmission is most likely repairable and cost will depend on whether it is a Manual or Automatic and what actually needs to be repaired. This could be a simple adjustment to the bands and solenoids in the transmission or a clutch issue but you won't know till you take it to a shop. The speedometer could be a broken cable or broken speed sensor, both are repairable and actually don't cost that much. Another possibility is the speedometer itself having a broken spring inside.
The most common failure in any manual transmission is a broken tooth on one of the gears, unfortunately gear lube is very sticky and often times it will pick up a broken tooth and run that chunk back through other gears causing massive damage. I would refrain from driving it and get it fixed. Some of those gear are very expensive. I don't know that this transmission has a specific weak spot, I haven't heard anything negative about it. VW usually makes a great transmission.
Drive it until it gives you a problem. You probably have been driving like that for a long time anyway. A good transmission person would know where it came from by looking at it. Most dealers do not rebuild transmissions any more they replace them. Chances are the other half of the snap ring is still holding and may not give any problem.
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