Could definitely be a wire. My car is a 2000, 1.8T, but those damage pics look just like my car, right now. I found that the big red wire that runs from the row of fusible links to the battery pos terminal had worn about 1/2 through from rubbing against the top of the battery. Cable with 1/2 the copper conductor worn through (frayed wires) will cause heavy current drain, resulting in this type of heat damage. Hope to buy or make a replacement wire tomorrow. The wire is about 8", right angle eyelet on one end, straight eyelet with stiff black plastic tubing forcing other end in a gradual 90 degree bend on other end. Other possibly related symtoms on my car(besides heat damage) is 30Amp AC fuse repeatedly blowing, and slow cranking. The car is running like crap too, but I blame that on other issues (fuel management/sensor/vacuum leak). But who knows, maybe the wire will fix that too! Yeah right...
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