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In reading my Road & Track on Volvo a while back, I noticed they mention the rear end for the 164 was made by Volvo rather than Dana... My guess that was to accept the greater power and torque. If thats the case, it might be an easy solution to that issue...
But, I don't know for sure if it would be better... and limited slip my not be an option. I would think the Dana 30 unit would probably hold up fine for a while. WHat the heck though... If you got a Jag IRS, might as well go with it...if the track is appropriate.
Good luck with it! Sounds from specs that it would be a good option...
-Matt
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