2000 beetle automatic no shift into 3rd or 4th

we are having a problem with a no shift into 3rd or 4th gears with a vw tdi beetle automatic, anyone have a idea of what can be wrong , also the yellow light at the shift console stays on, we just bought the car and thsi is how it was , where do i start checking or what can be wrong , everything else works ok even reverse, thanks leo 442

The automatic transmissions in these cars are known to be junk. Most automatics will stop working between 80,000 and 150,000 miles. I swapped mine to a standard 5 speed. There is a sensor wire that goes under the trans mount you can check this wire to see if it has a spot worn into it shorting out the sensor if itdoes not then you probally need a transmission. The transmission for these cars are about $3700.00 without labor. The automatic transmission is coded 01M do asearch and you can find more info.

what he said^
good luck
I have one too and will be doing a manual swap one of these days.

I lost 3rd & 4th gear when squirrels damaged the wiring to the speed sensor. Took the car to AAMCO in Gaithersburg Md and they fixed it, out the door for $100! (The dealer, right next door said I needed a new transmission)!

Yes, explore all your options first. Particularly if you have a backup vehicle and this isn't an emergency. Be extremely careful on who you have touch your car because they might make more problems.
Is the car just not shifting into 4th gear or is the problem the torque convert. not locking up?