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In short yes it can, but why would you want to type 1 is a weaker unit and has gear ratios tailored to a smaller lighter vehicle. This mean the engine would have to work harder and would need more horsepower. On the contrary many people have used a type 2 IRS engine in a VW bug...esepecially the baja bug. Also Type 2 CV joints and axles are stronger. Early type 2 used transaxles very similar to the type 1 but with reduction boxes at the wheel ends to change the overall gearing ratio and lessen the load on the transaxle. Unless you are willing to change the type 1 internal gearing and don't plan on using it for hauling anything I wouldn't change to type 1. In highperformance type 1 racing applications many peolpe have switched to type 2. Also mounts are different and would require some fabrication work depending on year trans to year of vehicle going into.

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Q: Will a vw beetle type 1 IRS transmission work in a type 2?
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