helen, the exhaust is often in several sections, so if only 1 bit is gone, it should be fairly cheap and easy to get fixed, exhaust then bolts onto the manifold, which in turn bolts onto the engine, so its possibly the manifold your talking about. the sensor on the exhaust should be the lamda sensor, if its gone i would expect an engine management warning light to have come on, and possibly the car to go into limp home mode... had the car a turbo??? it would be on the exhaust manifold... it wont be a cheap fix... bm's and vw's are quite prone to blown turbos... post a pic of the damaged area
if its just blown a hole the hole can be repaired by either welding or brazing... again, not expensive.
the catalyst lives under the car usually so i reckon it aint it
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