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89 740 M47 speedometer off/on 700 1989

A good riddle. Speedometer operates when driveline is under torque; ie, foot on gas...take foot off gas, stop the driveline torque, speedo drops right off to zero. Question: Could this be the adjustment on the speed sensor on the differential. Does the speed sensor work by magnetic induction with the rear end gear? What is it about stopping the torque that stops this from registering? Thanks.






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