[Vwdiesel] RE: bouncing speedometer needle

[dave]

I have run into this.  The Vehicle Speed Sensor in the tranny is one
potential cause.  Replacing this for me reduced the condition but didn't
totally eliminate it.  Also check grounds on the engine.  The connector
to the VSS can be bad.  Also the connector in the dash, and lastly the
magnets on the end of the speedometer needle.  It is not easy to fix a
bouncing speedometer.  On a diesel the info from the VSS isn't used for
anything so it isn't going to hurt performance.