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I suggest that you check your coolant level when cold. It sounds like you have a problem with loss of coolant, this causes the gauge not to read accurately and also can make the engine not run well. I suspect a head gasket or something similar if it's gone too far. Good luck.
If you find oil in your coolant, it's your head gasket usually.
Automatic and standard transmission needs fluid change every 24 months. On automatic transmissions, the gasket needs to be changed as well as the filter. On standard transmission there is a drain plug that can be loosened up, and refilled through the refill hole. Standard transmission use gear oil, while automatic transmission uses automatic transmission fluid.
All i can think of is the thermostat is not opening. or you may have a clog somewhere preventing the flow. Check the T-stat and hoses and radiator ( for clogs) Good luck
I am fixing a similar problem on my daughter's 2002 323 Hatchback (Australian BJ model, RH drive) at the moment. Rainwater comes in from above the clutch pedal.
If you look down thru the vents in front of the windshield near the wipers, you will see a spot-welded body seam running across the bottom of that recess. This is where hers is leaking. I originally sealed it with a RTV silicone sealant which fixed the problem but after approximately 6 months it has started leaking again. I am going to remove the silicone and seal over the seam with a brushable bitumen -type sealer.
Remove windscreen wipers and the vent panel for easy access to the area.
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