Hi,

My new 1997 300Tdi has some issues with the Speedo...

The speed reading is way out! To get the correct mph look at the KM/h and half it!

i.e. if it says you are doing 100km/h it actually means 50mph.

Is the speedo cable driven, or electronic? Any ideas on how to fix it?

Cheers.

On that year I think the speedo is 'driven' by a transducer on the transfer box . The transducer fits where the cable used to be on the older models and sends a signal to the speedo head in the dash .
Changed one on my brothers 96 300 Tdi recently as the speedo had become very erratic. I found that the short square bit ( like the end of a speedo cable ) which fitted into the drive in the box had almost completely rounded off and only worked occasionally .
The transducer is mounted on the transfer box near the handbrake drum IIRC - held in place by a 6mm allen headed bolt .
You could check the wiring connection to it first in case it got caught in something and disturbed the connection .