Yeah, WELD for sure! Find someone familiar with this kind of work or you will a) find the rust coming back in short order, and/or b) wind up with burned/melted components around the weld area. You'll need to cut out ALL the rust... cut clean back to good, bare metal, and weld from that point. I have never done this, but I am sure plenty of forum members have and can offer more advice. Good luck!
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1992 300D 2.5T
1980 Euro 300D (sadly, sold)
1998 Jetta TDI, 132K "Rudy"
1974 Triumph TR6
1999 Saab 9-5 wagon (wife's)
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