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there is a load on the lock pin in the steering column try turning the steering wheel a bit left or right to release the pin as you try turning the key.
Steering wheel locks never lock straight ahead as the idea is that if the car is being stolen it will turn a circle rather that move straight
To fix your problem, you have to turn the steering wheel either to the
left or right as much as you can, then try to turn the key in the
ignition. When the steering wheel locks, the key won't turn. By manually
holding the steering wheel out of the lock position, the key will turn
again and you're steering column will be back to normal.
You said the steering column is not locked, so I assume you have tried turning the steering wheel from side to side while you try to turn the key. Have you tried pulling the key out very slightly, or pushing it in harder?
1990-94 Cabriolet,1990-93 Fox, 1990-92 Golf and Jetta
Fig. Lock cylinder drill point.
Disconnect the negative battery cable.
Remove the steering wheel, then remove the steering column covers.
Remove the turn signal and wiper switches.
Disconnect the ignition switch wiring.
On some models, the hole in the lock body for removing the ignition lock cylinder was not drilled by Volkswagen. To make the hole, use the following measurements in conjunction with the illustrations. Drill the hole where "a" and "b" intersect on the lock body. The hole should be drilled 0.19 inch (3mm) deep
Remove the lock cylinder by pushing a small drill bit or piece of wire into the hole and pulling the cylinder out. It might be easier to insert the ignition key, turn it to the right a little and pull on it.
To install:
Insert the lock cylinder into the housing with the key in the cylinder.
While gently turning the key side-to-side, press the cylinder in to the stop. It should click into place.
Temporarily fit the steering wheel onto the splines, then make sure the column locks and unlocks smoothly.
Install the switches, column covers, wiring and the steering wheel.
Connect the battery cable.
1995-99 Cabrio, 1993-99 Golf and Jetta
Disconnect the negative battery cable.
Center the steering wheel.
Remove the air bag.
Remove the steering column switches.
If the vehicle is equipped with an automatic transmission, detach the shift lock cable from the lock cylinder housing.
Remove the adapter sleeve from the steering column.
Remove the spring and horn contact ring from the steering column assembly.
Detach the sheer bolt.
Insert the ignition key and unlock the cylinder, then detach the wiring connectors.
Once all wiring has been detached, slide the housing off the steering column.
Mark and drill the lock cylinder as shown and described in the above procedure.
Compress the stop spring and pull the lock cylinder out of the steering column housing.
Put the new lock cylinder into the steering lock housing.
Insert the key into the lock cylinder.
While you gently turn the key, insert the lock cylinder fully into the housing.
The rest of the installation procedure is the reverse of removal.
NOTE
Always use a new shear pin when installing the lock cylinder.
You'll need to remove the steering wheel, 15/16th inch socket, the column top and bottom cover, remove the 3 screws holding on the turn signal and wiper stocks. Unplug and remove the stocks. Remove the black plastic sleeve on the hub. Remove the 1 allen bolt holding the lock cylinder/switch assembly. Remove assembly, there is a phillips screw holding the ignition switch in the assembly, remove that screw and pull out the ignition switch.
On tilt columns, remove the upper extension shroud by unsnapping the shroud from the retaining clip at the 9 o'clock position.
Remove the trim shroud halves.
Unplug the wire connector at the key warning switch.
Place the shift lever in PARK and turn the key to ON .
Place a 1⁄8 in. (3mm) wire pin in the hole in the casting surrounding the lock cylinder and depress the retaining pin while pulling out on the cylinder.
When installing the cylinder, turn the lock cylinder to the RUN position and depress the retaining pin, then insert the lock cylinder into its housing in the flange casting. Assure that the cylinder is fully seated and aligned in the interlocking washer before turning the key to the OFF position. This will allow the cylinder retaining pin to extend into the cylinder cast housing hole.
The remainder of installation is the reverse of removal.
Unbolt the steering column and lower it carefully.
Remove the ignition switch and warning buzzer and pin the switch in the LOCK position.
Remove the turn signal switch.
Remove the snapring and T-bolt nuts that retain the flange casting to the column outer tube.
Remove the flange casting, upper shaft bearing, lock cylinder, ignition switch actuator and the actuator rod by pulling the entire assembly over the end of the steering column shaft.
Remove the lock actuator insert, the T-bolts and the automatic transmission indicator insert, or, with manual transmissions, the key release lever.
Upon reassembly, the following parts must be replaced with new parts:
Flange
Lock cylinder assembly
Steering column lock gear
Steering column lock bearing
Steering column upper bearing retainer
Lock actuator assembly
Assembly is a reversal of the disassembly procedure. It is best to install a new upper bearing. Check that the truck starts only in PARK and NEUTRAL.
The steering wheel lock is a metal prong that protrudes into the steering shaft from within the ignition lock assembly, that is held on by two security screws pointing upward underneath the plastic steering column covers. You can remove the 2 screws and check out the working of the mechanism. It's probably stuck. Most likely, when you put on the new steering wheel, you simply twisted the ignition assembly and it is now causing the steering lock to be wedged on in the lock channel. Try twisting it back the other direction with your hands and I'm pretty sure it will allow the spring loaded locking mechanism to release. This same problem happened to me and took me a while to troubleshoot what was going on in the mechanism and figure it out. If twisting it both directions and checking to see if it releases with the key turned doesn't fix it, just remove the ignition assembly and lubricate the locking mechanism bolt and that will fix it for sure.
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