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The E engine is high compression, or should we say the "regular" engine, and the F engine, which all US cars received, is the somewhat lower compression engine, making a bit less horsepower. Volvoworld.com has some good tech info in their 240 section, which should clear up what engines made how much horsepower. That's a great resource and you should check them out if you haven't yet. The E engine would not be a federalized version of the engine- it may or may not be able to pass your state's emissions tests. I'm sure a good running E would pass anyway, but Volvo's reason for sending us the F's was to comply with the tough (for the time) California emissions standards.
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Rob Bareiss, New London CT ::: 86 244DL, 87 244DL, 88 744GLE, 91 244: 808K total
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