welcome quaswold,
1) check temp sender connection and resistance of sender itself in engine bay. someone will know there exact location and picture.
2) factory fit ambient temp was three lamps i believe not a gauge (anyone else on this?) most likely the sender under the front bumper being duff or connection faulty.
3) the mk1 had a multi section speedo cable, the rear part to the gearbox often fails first, if this happens, speedo fails then EPAS cannot receive a speed signal so cuts the system.
hope this helps as a starter for ten