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What does the IAT Sensor do? I saw a modfication to a replace this with a resistor (100K), to improve engine performance and gas mileage by making the engine believe the air temp is 32 degrees. Could this cause any improvements or problems with the engine?
The engine's computer knows the temperature of the air being ingested into the manifold's plenum. It then modifies the spark, and a few other things, to account for the actual conditions going on - including the IAT reading.
If you trick the IAT into reading cooler, you'll be advancing spark based on a cold intake charge. If you don't mind buying premium fuel, and can live with a little detonation... It could also change the open loop to closed loop fueling transition, resulting in overly rich for extended periods.
Yes, you COULD get a little more power, but their are definately downsides which should be considered.
I will say this, though, If you cut one of the wores leading to the IAC and splice in a 5.6kohm resistor, you will see some pretty good gains. If it doesnt ping, double that till it feels right. This way the IAT will still adjust for different temps, your truck will just think its 20 degrees colder.