on the A4's, they are typically under the front bumper cover closer to the drivers side.
There're two got same name, same spec, but different shape. One on intake hose/adapter to throttle body, it's called intake air temperature sensor. Another can see through from front bumper lower section, in front of air conditioner condenser, on the bracket of power steering cooler. It's called Ambient temperature sensor. If you don't see it, it's gone, the wire or connector is quite easy corroded.
You should have gotten a letter from Audi about an extended warranty. The sensor is now covered for 10 years/100,000 miles for a falty sensor. This sensor (if malfunctioning) will cause the MIL to light up by "sensing" that the engine coolant is a couple degrees above what it should read. No Idea where it is but you shouldn't have to worry about replacing it yourself.
Diagnostic error code number 118 with high temperature input on a Audi A4 means that the engine coolant is not running at the right temperature. When the engine is cold, it should be warm, and when the engine is warm, the temperature should be cooler in the engine. The problem could be with the Engine Coolant Temperature sensor or the vehicle could be low on fluid.
On normally aspirated cars, the MAF sensor contains both the plate resistor that serves to detect mass flow rate of air, as well as the temperature sensing bead resistor (thermistor) you make mention of that serves to detect intake air temperature. The intake air temperature sensor is located at the intake manifold for 1.8Ts, both Audi and VW, not on the MAF. On these cars, the MAF only has the plate sensors that detect mass flow. The reason behind this is that in normally aspirated cars, the temperature of air passing the MAF is approximately equal to the temperature of air entering the combustion chamber. In Turbocharged cars, the compression of air in the turbo raises the temperature of air, then the intercooler reduces the temperature thereafter. Thus the temperature of air passing the MAF could vary greatly from actual temperature of air entering the combustion chamber. The ECU must obtain a correct temperature value for air entering the combustion chamber to provide correct fuelling, and to avoid a lean or rich combustion. To ensure that the ECU gets correct values for temperature of air entering the combustion chamber, the thermistor is located after the turbo and intercooler on turbocharged cars. On your 2003 VW 1.8t GTI, you can find it on the back of the intake manifold to the right side of the throttle body, opposite the fuel rail.
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