Light showing on dashboard

Have you tried a local (trustworthy) garage that has diagnostic equipment? See what the fault codes are before you get anything drastic done, dealerships like to dramatize things to screw you for money. It may be something simple like the lambda sensor. Just a thought :S

Depends on what they mean re. " cyls gone " but 2k sounds a stupid figure . All depends on what the problem is with car . As suggested above , get an independant garage to give you a second opinion and describe what they suggest is needing done .

The 1.2 3cylinder polos have a comon fault with the valve guides wearing. VW replace the clylinder head if the car is under waranty but a cheaper alternative is to lap in the valves. this fault can be determined after a compression test. compression should be above 175 psi. if the compression is low then the cylinder head will need to be removed and that will mean one of the 2 fixes mentioned earlier in this post. and lods of bolts and seals will also need replaced as they are only to be used once.