I used to own a 300D Euro model, that, when imported, had an intercooled turbo put on the motor. For obvious reasons, the turbocharger provided no boost whatsoever to the engine, but the point is, an intercooler will fit in a 123 chassis. I would think that the shorter the cooling lines (going to and from the condenser) the better chance of keeping the compressed air cool.

If you manage this, please let us know your results; it sounds like an interesting experiment.

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Matt
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1995 E300 Diesel (Die Blau Frau)