I would first see that the wire is good. Disconect the wire at both ends and then use the ohm setting on a test meter and go from a good ground to each end to see if there is a short to ground in the wire. If not then ground one end and check the other end to see that it is now grounded. This checks a couple of things, that the wire is OK and that you are dealing with the same wire at ether end. If all checks out you will need to test the sender and guage unit. More info on the unit in hand will be needed for that but checking the wire is a good start. I tend to not suspect new parts right away if the old stuff was also not working right. If the wire checks then all the hookups at the dash should be tested. sender wire might be good but the guage is not getting proper 12V. Had one where the 12V was coming from the dash lights. Dimmer knob could be use to tune the readings as the driver saw fit.
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