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In think it can also be caused by bad speedo cable--is the needle unsteady?
Have one W124 that has unsteady needle when cold but when warm needle is fine. Cruise behaviour mimics this, i.e is fine when needle is steady.
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Kent Christensen
Albuquerque
'07 GL320CDI, '10 CL550. '01 Porsche Boxster
Two BMW motorcycles
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