The temp gage is going up and down due to the lost coolant, this creates air bubbles that get around the engine coolant temp sensor, air doesn't transmit heat energy very well so the gage quickly drops. Have the cooling system pressurized with a special tool to locate the source of the leak. Common area of leak is the engine coolant pump driver shaft seal. Also look for white crusty looking stains, this is dried engine coolant.
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