>Although Golf and Subaru both have distinct but different advantages,
>usually low initial cost vs. higher power, has anyone ever seen or
>considered installing a transverse engine in the back.

I have idly had this thought myself.

>The major disadvantage to me would be engine access and it could also
>require some space loss under the back seat.

Why a loss of space? At least some engines should all fit under the deck.

> I have heard of some putting a mid engine in and a
>normal axle in the back but this would make it a impractical vehicle.

Why a "normal" (you mean live?) axle? A midengine job could use the
existing IRS.

>If possible any ideas which engine/transaxle might work best?

Suggestions: Toyota Camry 3.0 V6?

Problem is differential rotation. To work you'd have to do a midengine in
order to have the engine/trans oriented as it was in the donor car. Turn it
180 degrees to fit the VW engine bay, ie with engine behind diff, and
you'll have 5 reverse gears... and I very much doubt the diff in any FWD
car is reversible.

A midengine job would mean removing the rear seat and building a box over
the new engine location. You could then fit narrow seats either side of the
box, I suppose.

Andrew Grebneff
Dunedin, New Zealand
VW & mollusc nut
1984 VW Caravelle (currently SVX engine; waiting for a Porsche trans)
1985 Mitsubishi Galant Sigma 2.0 (FWD), for sale
1986 CE80 Toyota Corolla 1.8DX diesel (extaxi)
1989 CE96 Toyota Corolla 1.8DX diesel wagon
1989 CT170 Toyota Corona Select 2.0 diesel (taxi)