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1987 740T Runs Great, but Poor MPG and Exhaust Mainfold/Turbo Glows Red 700

I have a 1987 740 Turbo which is running hot and rich. When driven at night the exhaust manifold and the portion of the turbo attached to it will be glowing red. Also I am getting about 19-20 MPG now. Other than that the car seems to be running great. It starts, accelorates, and overall runs fine. I took it to a nonvolvo mechanic who replaced the O2 sensor but the problem still persists. Does anyone have any ideas what could be causing this? Thanks for your time.

Josh






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