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The thermostat/flap assembly restricts air flow somewhat, and the hot air duct definitely does when it is drawing air from that direction.
Remember that it gets extremely cold in Sweden---40 below (which, curiously, is the same in both fahrenheit and celsius) at which temperature the warm air makes more of a difference. If you live in a more moderate climate, it is probably unnecessary with fuel injection. Carburetors are another matter---they can ice up at temperatures as high as the low 50s (F) if it is humid, so intake heat is a lot more important.
I get 29-31 MPG from my 88 745 with M46 and 3.31 rear axle.
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