Does the smoke go away right after it starts? How many miles does the engine have on it ? Runs OK ?
I have seen blocks crack from one of the cooler holes straight to the mounting flange then down behind the flywheel and crack across the top of the case to a upper clylinder head stud on #1 cly. Kind of rare.
Back to the smoke. If it keeps on smoking after warm up, take the oil filler cap off while its running and see if it blows smoke from there while reving the engine a little. If it does it could be the rings. If it puffs like a steam engine it could be a burned piston and it might not run so good.
I have seen a lot of VW engines puff smoke on start up and not have any problems.
What size engine does this Bug have ? Being Mexican it could have a 1200-36hp , 1200-40hp, 1300-50hp or even a D.P.1600-60hp. I bet it has a old model swing axle tranny.
