The Mk4 chassis is definitely an understeerer when stock - even the 4Mo cars (though they start to correct it once power starts heading rearwards).
A stiffer rear bar will make the rear end more lively, and to a degree help to dampen the understeering nature of the car - particularly on throttle lift. Stiffer shocks and springs all round (if you have the originals in it, you'll find they're quite soft by now) will help as well, as they'll stop the car from shifting to quickly/far onto the outside suspension under cornering, which enhances understeer behaviour.
If your suspension's as wallowy as my 4Mo suspension was when I got it, replacing it with a matched set of sport shocks and springs will make a world of difference. I'd leave swaybars alone until you sort out the struts and springs (as much as a swaybar may be intially cheaper, it won't fix the issue with your shocks/springs, and you may find that stiffer swaybars aren't needed for your driving style once the shocks/springs are sorted.
You may actually find that new springs raise the car slightly, as if you have the original springs, they've almost certainly sagged.
The Stage 2 refresh kit is definitely worth doing regardless. If you hold off on the installation and do springs/shocks at the same time, you'll save on labour/time off the road.
Rob
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