I've had this light on my recently acquired 2010 GTI, and I'm very lost on why being new to VW. The car is equipped with xenon HIDS, and pretty sure the fogs aren't programmed to light up while turning at low speed. I remember seeing the headlights turning with the wheels at low speed, but now they don't anymore. I can see the lights go up and down on start-up for calibration, but they seem unable to calibrate, causing the light on the dash and the headlights to point downwards. I've checked the sensor at the rear of the car to see if the arm popped off; everything is intact. All suspension is stock too. Any help is much appreciated!!
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So.....I had this happen to my 2012 GTI back when it was fairly new, less than a year old or so IIRC. I had lowered the car and re-leveled the lights with VCDS but that had been a decent while before this error popped up. Same issue, headlights pointed down, in fact I don't even think they did their dance either, it's been 11 years but I am fairly certain they were just dead.
I took to dealer because I was under warranty and they found that the headlight module, in their words, "Had lost it's coding." They basically said the control module for the headlights was BLANK for all intents and purposes. No idea how or why that would happen, they reprogrammed the module and it worked fine.
It could just be the sensor on the arm on the rear suspension itself died if yours are still doing the dance and sweep that would seem to say the module is programmed but just not getting the right data, but that's just a guess. If you can scan it with VCDS or even OBD11 to see any codes that might narrow things down.
