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If it's like my car the yellow wire is cut so that two alarm wires can be spliced in. The two ends of the cut yellow wire should still be visible. The idea is that the yellow wire is rerouted through the alarm and when the alarm is ON the connection to the starter motor is disconnected. If the alarm doesn't work properly then this could prevent the starter motor from operating. I'm sure a knowledgeable thief could easily by-pass this disabling by putting a jumper lead on the two yellow wires.
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1959 Bristol 406 (bought in 1972; sold in 1977)
1966 Porsche 2.0 coupe (bought in 1977; sold 1981)
1978 Porsche SC coupe (bought in 1993)
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