Product Specifications* Type 02M 2WD - Mk4 Golf /Jetta Beetle S (six-speed)* Differential housings made from either 4320 or 8620 steel* Gears made from 9310 steel* All parts are from billet, and CNC- machined to the closest factory tolerance* All differentials have been heat treated, Sub-O, and shot-peened
There's an old adage: two is better than one, and when it comes to acceleration and handling, this holds especially true. A stock differential is designed to give a sporty feel to everyday driving, but proves ineffective under hard acceleration and cornering because there's a loss in acceleration and traction as it shifts power to the one wheel with the least resistance.
With an increase in horsepower, the inefficiency of the stock differential becomes even more apparent. So a widely employed solution is to replace the stock diff with a limited slip diff such as a Quaife or Peloquin. These work by distributing an amount of power to both wheels all the time, meaning you always have some drive, no matter what the conditions or circumstances. We decided to work with Futrell Autowerks of Hillsboro, OR and take a look at the installation of a Peloquin 02M limited slip differential.
Install SummaryInstalling the Peloquin diff takes about eight hours for an experienced technician. Two and a half hours are spent removing the tranny. After which, you have a chance to upgrade the clutch, and Futrell opted to fit a clutch kit from ECS Tuning.
Three hours of installation time are focused on removal and rebuilding the differential. A unique feature of 02M transmissions is the gear sets don't have to be disassembled when replacing the differential, unlike other VW transmissions.
Reinstalling the transmission and replacing the fluid accounts for the remaining installation time.
ConclusionThe major advantage of the Peloquin limited slip differential is its dual nature - the ability to act as an OEM differential during everyday driving and its ability to sense torque requirements and respond during performance driving.
Fit LSD assembly and gear...
Fit LSD assembly and gear set at this stage before replacing cover
Other benefits include the use of bolts instead of rivets in the assembly, which is known to increase transmission life. You also get enhanced power delivery, superior cornering and better acceleration.
For somebody who is thinking about upgrading the power in their front-wheel drive car, you should seriously consider this option as a way to maximize the engine upgrades. So are you wondering why you don't have one already?
Parts Cost/Labor SummaryPeloquin 02M differential with bolt kit, $925Sealing paste, $35R&R transmission labor, 5 hours @ $72/hrR&R differential, 3 hours @ $72/hrDrill-out rivets, $20Three quarts of Redline MT-90 fluid, $30ECS Stage Three Clutch Kit, $719Total, $2305
 After transmission removal,...  After transmission removal, drain fluid then split transmission case | 
Remove gear set | 
Remove OEM differential |
 Fit OEM ring gear to Peloquin...  Fit OEM ring gear to Peloquin LSD using supplied bolt kit and torque |  One of the trickier parts...  One of the trickier parts of the install is removing the OEM ring gear to drill out the factory rivets |  Fit LSD assembly and gear...  Fit LSD assembly and gear set at this stage before replacing cover |