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Exhaust Gas Recirculation is a valve that is either shut or opens to allow exhaust back up into the intake manifold area. By allowing it into the combustion area, it reduces the temperature of the combustion. Yes, you heard right.....hot exhaust lowers the combustion temp. It's because it's cooler than the fire in the chamber!
It is located under your carb on the 300, and is actuated by a vacuum line (isn't everything?). When you stomp on the gas, vacuum goes to virtually zero, the valve closes, so a pure fuel/air mixture will burn, because your foot says you want to go.
At other times the valve is open somewhat.
So why are we doing all this? So the emissions will be less and we won't return to the eye-burning pollution we had in the 70s (and which some cities like Mexico City and Biejing are now experiencing)
another note on the egr recirculator. my 91 had a break. its right before the second cat. this made for one haggered sound. the clamp on the exhaust pipe broke due to rusting. so in essence the pipe was dangling. a little improvising fixed this, and i regained some of my fuel economy. when it was broken you could jsut smell it all inside the cab. for what thast worth...