Carl.
And the VR6 wasn't a bad engine at all for a car of that size, especially in 1994.
Dont know where you are from but in North America the VR6 wasnt offered in the MKIII until 1995. Also, the 1995 was the final running of the OBD-I VR6 engines.
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My GTI was assembled in Mexico. Apart from being the second owner, I have not run across any reliability issues. Right now, however, I do need to replace a few things. The clutch is going out, never been replaced in 118,xxx. I need a new steering rack boot for the passenger-front rod. Also, a big thing for VR's, the timing chain tensioner acts up if the car isnt allowed to warm up for a bit before driving.
Other than that I have only had to replace a few Vacuum hoses, and a lower radiator hose (B!TCH to get to..).
Other than that, because yours will be OBD-II your CEL will probably come on for the littlest things. Mine only turns on to remind me that the EGR valve is sticking but thats not something im worried about.
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I know people have their opinions on cars but when looking at other hatches provided in the United States at the time, the VR6 GTI ranks among the highest (In price and performance). I wouldnt knock it just yet either. Have the people who don't like the GTI ever driven one? Yes, the 2.0 may be underpowered and the VR6 on the heavy side but its not really until you own one when you start to really love the car.
Oh yeah, be prepared for non-car enthusiasts to refer to all MKIII's as "Jettas". Also, your car is "cute" in the mind of the female population. You are also lucky you have a glove box, seeing as they didnt start putting those in the MKIII until 1996....
When you tune it please tune it right. The geometry of the VR6 does NOT allow for it to be dropped and still handle well. You can really only lower it MAYBE 2 inches below stock but that is even pushing it. If too low, the center of gravity wil be sub-terranian and that is something that reall affects the understeer and cornering of the VR6 (weight distribution is the key!)
If you wantto concentrate on suspension I would suggest a rear sway bar (the front is a good size stock), and upper tie bars and a lower front tie bar. Also, a nice Cup kit or coilovers (adjustable if you really want something awesome to fool around with) will help thehandling dramatically.
While im not really into too much internal engine modification, I know that there are some nice (while expensive) exhaust systems out there. There are also many options for a good intake set-up (IM me is you wan to know mine). As for cams, lifters and all that internal jazz, I would recommend searching on the vortex.
Whew! Sorry so long winded but there is still something I probably forgot.