The thermostat is on the front, not side of the engine. If the thermostat was leaking it would go straight down under the car at the front, not from the side.
The mating face of the water pump on the engine was ok, not corroded or damaged?
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Our cars:
2002, 1.9TDi PD 100 New Beetle (UK car)
2007, 2.0 New Beetle (UK car)
1958 1200 Beetle (multi show winning car)
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