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Re: 89 Vanagon Transmission Leak...Help!
Not sure if you got this problem fixed or not yet, since it was almost 3 years ago, but I had a similar problem and found that the antifreeze/transmission cooler box had a leak, and antifreeze was being forced into and mixing with the transmission fluid. Since the antifreeze system is always under pressure, the pressure from it was actually pressurizing the transmission fluid, forcing it out the transmission seal, which was then being thrown out all over the engine compartment by the torque converter. The seal behind the torque converter on the transmission input shaft was dissentigrating and had to be replaced (you must separate the transmission from the engine to replace it). Then I simply bypassed the antifreeze hoses connected to the transmission cooler (located in the front of the transmission) which then stopped the leak. I really do not know why Volkswagon decided to install a transmission cooler on the 1989, 1990 and 1991 transmissions anyway. They really aren't necessary in my opinion. Maybe they are if you have a heavy load to tow or if you have a lot of mountains to climb.
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