Bingo! that's the correct operation.

Also at higher revs the fan clutch disengages.

At over 30kms per hour the air movement through the radiator renders the fans redundant. Even at extreme ambient air temperatures the system should keep the engine temperature at or less than 110 degrees - not up in the red. This is why I suggest a coolant circulation problem.

It is my H.O. that the M103 engines should have idiot lights rather than a temp gauge - which seem to worry many people by the temp oscillations.