Hi. Now there is 4 years difference between our cars, and the parts places I checked did not list the part you have in question. But on my car, '84 500SEC,the very sensor you question (located in the place you mentioned, is an oil temp sensor used to set the on and off ratio of the frequency valve.

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Selling used Mercedes parts on Ebay...always changing...
cdplayer51 take a look!
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