Let me start by saying thats a nice MK I.
Now down to the problem. It is very possible that the oil pan is hitting the crank. But the dent would have to be very deep for it to do that. Did you check the oil level in the car? I guess you're going to have to take off the oil pan to see if that was the problem. Either way, if it seized you're going to need a new engine. So might as well take it out instead of taking off the steering components.
|