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ICQ>
Definitely check the converter. They have a tendancy to plug up. I believe the warranty must be at leats 5 years and 50,000 miles on emissions parts, so you might be covered at your dealer.
I do think the performance exhaust is a good idea. The IPD one is really just a 240 Turbo exhaust, but is slightly larger and will add some power. A 240 header is also available. If you have to do exhaust work to replace the converter, I would probably just buy a large diameter converter from JC Whitney and a header from IPD or another source and the cat back exhaust from IPD or another source and reconfigure your entire exhaust.
The cam and exhaust will both imrove power above 3000 rpm, but probably sacrifice power below 3000 rpm. You have to drive a performance car a little differently -- at somewhat higher rpm or a lower gear -- under certain circumstances.
I hope you are using premium gas, because I believe your car has a knock sensor. Most mechanics and auto experts will tell you that if your car does not ping on 87 octane, then that is all you need. My response is that that is all you need for minimum performance. On a VW GTI 16 valve, you will be down as much as 20 hp as the knock sensor retards the ignition timing so that the cheap gas will not cause detonation. Buy 92-93 octane gas.
Synthetic oil is worth around 2% in horsepower on the typical car. I use it everywhere -- in the engine (10W30), in the differential, in the power steering (Redline Power Steering Fluid), and in the transmission (Redline MTL for the M46).
In 1992, Volvo switched to an electric primary fan on the 700/900 series with the B230F engine. I recommend an electric primary fan. These add low end power that you will feel be eliminating the fan clutch. I have had an electric primary fan on my 83 242T for eight or nine years and one on my 89 745T for over a year. You could probably get the Volvo fan from a junkyard, but get the thermostat for it from the lower radiator hose and install it in your upper radiator hose. There are plenty of other fan sources. Do not use a plastic tie through the radiator mounting system and preferably do not use an external thermostat -- you want on ethat contacts the coolant.
With the electric fan you should gain back most of what you lost with the exhaust and cam. You can also buy an adjustable timing gear or modify yours to advance the cam timing 4 degrees to restore some low end, but I would definitely do a full tune up first and check for vacuum leaks and check that converter.
I see no reason why you could not have around 140 hp instead of 114 hp, and you will definitely feel the extra power once you have corralled all the horses in the stable.
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