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I'm not certain, but assuming it does work, the upshift speed will be fixed (non-adjustable). I vaguely recall it being around 7mph or so which is probably fine, as the control cable will automatically increase the upshift speed if you have your foot further into the pedal. My cars have BergWerks FGS modules so I never seriously investigated this option.
This item (002 545 41 32) is found on 107 & 126 Mercedes V8 cars 1981 thru 1992. The Seller I corresponded with was Gulf Stream Technologies of Florida (specializing in MB items; reputable 100% ebay feedback). Seller stated it is compatible with my W124 500E and it's a simple installation connecting only four wires. As gsxr states, this item has pre-set shift points.
IIRC the used item was @$94. List prices new range from $189 to $214.
I'm still weighing options regarding FGS. There's several available choices ranging in various degrees of complexity & functionality. I have decent Pick-a-Parts nearby. I was considering stripping this entire item complete w/harness & connectors from a 126 & taking pictures of connections, locations, etc. prior to removal, but I feel the same FGS result would be achieved as demonstrated by 2phast's first iteration of FGS (manually controllable modification of the existing gate shifter "B" switch).
IMO the most functional currently available option is the Irish $149 coaxial FGSSwitch system. (just a helluva lotta patient plumbing required to install it)
Remember that any FGS solution is only needed if you want FGS all the time, for every start.
If you just want the occasional first gear launch, move the shift lever to the "B" position for a second or two while at a stoplight, then put it back to "D". I have found that for most around-town sedate driving, I actually prefer the second gear start; and often leave my FGS in the "SGS" position. YMMV, etc...
The W126 FGS module works good, but the 7 mph upshift isn't ideal, at least IMO. The FGSstart module I use allows me to adjust the upshift/downshift and right now I have it set to hold 1st gear to about 25 mph. Very happy with the setup.
This FGS was found on Series 1 W/C126 cars -- I don't believe it was used in Series 2 cars (Model years 1986-1991) with the possible exception of six-cylinder cars. Definitely it was not used in 560s though. It indeed will work. Talbir discussed it on the 500Ex forum and I believe has implemented it in one or more of his cars. However as 2Phast says it is not as flexible as the BergWerks FGS nor the FGSStart system that 2Phast is running. I personally think it's preferable to get a BergWerks system (if one can find it) or nab a FGSswitch system.
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