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The oil pressure is low. Drop the pan and replace the oil pump. The screen on the pickup could be sludged up, indicating poor service habits. VWs will sludge up if you neglect to change the oil at the intervals recommended. VW will generally not honor any warrantee in this case.

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Q: What would cause the oil light to blink and beep in your 2002 VW Jetta 1.8T when the oil pressure and levels are fine?
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