I have a 2002 VW Jetta TDI and the glowplug light blinks while I'm driving. At the same time, my brakes feel like their compressing, and I can smell hot brakes in the rear when I park. The parking brake is not on.
The glowplug light blinking is usually an indicator of a brake problem. The usual problem is a failed brake switch. VW has had a ton of problems with these. When it fails your brakes lights either stay on all the time or don't come on at all. If you have an automatic it prevents you from shifting out of park, but that can't be since you are still driving. Just get someone to check your lights when you step on and let off the brake pedal.
Does your car have ASR? The other solution says that the rear brakes can activate for motion control but this is only if you have ASR and then I believe the ASR only works on the front wheels since those are the drive wheels. I don't believe ESP was an option on 2002s. If your brake lights are on all the time your car could think you are trying to brake and the ABS could be kicking in.
If the brake switch is working you need to scan the car for the error code to narrow down the problem. Someone with VAG-COM or the dealer can pull the code.
If the brake light is sticking it is a recall issue and the dealer will fix it for free. A short term fix is to kick the pedal hard a few times to "loosen" it up (worked for me).
They might be two unrelated problems. I have a 2001 and have had two failures of the glowplug harness. The last time I had a constant light.
As far as the brakes go, the rear brakes are used for motion control. So if you drive it pretty hard the computer will be applying the brakes to keep traction or stability. I have had the same sensation of a soft break pedal from time to time but no real problem has poped up. I did have a master cylinder go way back when I first got the car in 2003. Have not had to replace that part again.
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