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Yeah it ignores the O2 sensor input. I dont want to speak too much on this issue as I am not an expert, but I would point you towards the website and FR himself. Basically the O2 sensor is just there for smog control. Most ROW cars didnt even have them from what I understand. The O2 sensor forces a 14.7:1 air to fuel ratio, while the chip forces a 12.5 to 13.5, which is best for performance.
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'84 944, '05 GTO
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