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Rubber Stopper on Differential Leaking Gear Oil 200 1988

Hi,

I had gear oil leaking from the back plate of rear differential. I have confimed the leak is not coming from the filler nut or any driveline seals, but rather from a rubber boot and wire that's installed just above the filler nut. My neighborrhood mechanic cleaned the area around this rubber boot and sealed it with silicone to stop the leak - so far so good.

I'm looking to know what the rubber boot is for. It has a cable / thick wire running out of it, but I can't find where the cable runs to (the rear stabilizer bar and panhard get in the way). The Chilton manual implied it might be the electronic pickup for the speedometer (but not for this model car), and the mechanic was not sure what it's for. I do notice the speedo needle on the dash sometimes jumps up to 20 or even 40 mph quickly and with no ryhme or reasons (happens even when car is stopped).

This is a 1988 245 with 168,000 miles.






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