The automatic temperature unit is controlled by three temperature sensors around the car, if one of them fails then the system cannot regulate temperature properly.
1. One is under the bonnet directly above the steering wheel where air is sucked into the system, it measures the outside temperature. Mine failed and caused the heater to blow cold all the time. A new sensor was about £15 IIRC
2. One is behind the tiny grille next to the cigarette lighter. There is a flexi tube (which can come undone) and the sensor is at the end of it behind the glovebox liner. This senses the temperature inside the car.
3. One is behind the central twin vents in the middle of the dashboard. It senses the air/heater mixture.
There is a lot of info and pictures at
http://www.clarks-garage.com specifically at
http://www.clarks-garage.com/shop-manual/hvac-01.htm