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Originally Posted by SCLJA
The alarm wire does not have to be hooked up to anything. It is merely a trigger wire that tells the radio to go into code mode. I have installed hundres of stereos in 124 cars and never had a problem.....
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Without that wire hooked to a ground in my car, the alarm would go off just as soon as I locked the car with the key. I went for a couple of days locking the car with the passenger side door lock and closing the door so as not to set the alarm off. (The car doesn't let you lock the door on the driver's side by pushing the lock down, I guess to prevent you from locking the keys in the car.)
Bottom line is that on my 91 300E, that wire had to be grounded for the alarm to function properly. The Stock Becker radio went into code mode whenever the radio was disconnected from the main connector, or the battery was disconnected. In other words, if it lost power.
I wish I could find the wiring diagram for the stock alarm system...