Posted 14 May 2011 - 10:08 PM
If you are certain that the engine isn't running hot, it will almost certainly be the temperature sender gone faulty and you need a new one.
If you touch the wire connector on engine block, the needle will red-line.
The sender is essentially an heat operated switch which gradually earths the supply on that wire.
They sometimes go open circuit (needle stays at bottom) or short circuit (needle goes to top of guage).
Other times they will not read accurate (show cold at start and then quickly 'over-read' the actual heat of the engine.
Either way, replace it.
First note which connection is on the end of it (flat blade or round pin).
Get the new on and check the connector. Usually, they will be the same, but if they are different, (new ones are generally flat blade type), you will need to change the wire connector as well.