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I've been through NJ's (dynomometer) testing on all of my 240 cars, and over the years I've found that it's typical for a 240 to eventually fail for excess NOx due to a failed Cat (they don't last forever). Then I get a new Cat installed (nothing else done), and the car goes through and passes clean! See below.
It's not the cheapest fix, but it has seemed to work for me each time -- four 240's so far, over the past six years. At least after you get a new Cat, they're good for a while -- the Cat's should last ten years or more.
Example, my '84 240 got a new Cat in '02 (in order to pass that year's test), and it's latest test was in '04 (when it had 193K miles), where it scored (on the N.J. dyno):
NOx = 33 (1227 was the standard)
HC = 27 (162 was the standard)
CO = 0.02 (0.91 was the standard)
I can't say that you'll be as successful, as your car may also need other work done (I keep mine in good shape, continuously), but if the other fixes don't work for you, consider a new Cat.
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