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Having played with several O2 sensor locations and various sensor bypasses, I would have to say that changing the location of the sensor to closer to the exhaust manifold won't result in a noticeable change in fuel usage. I have a 1988 745 that I de-turboed using an engine from an 86 240. The car gets exactly the same mileage whether the O2 sensor is close to the Cat or the manifold.
Regards,
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Will Dallas, www.willdallas.us, www.willdallas.org, www.willdallas.com, www.dallasprecision.com 86 245 DL 222K miles, 93 940 260K miles, 88 765 GLE 152K miles, 88 780 246K miles, 93 Buick LaSabre 119,000 miles
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