You have any PROOF of this?
What makes atf3 and atf4 is very well documented if you google it around. it is NOT the same stuff. Before you start accusing people of being ignorant you should do a fact check on yourself.
Chrysler transmission fluids: 7176, ATF+3, ATF+4
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there are documented failures linked directly to running "other than 7176" fluids in these transmissions. If you were as good as you say you are, then you'd know that there are completely different friction modifiers in the 7176 than what is in Dexron.
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Bingo. The fluids are VERY different chemically. Which brings me to Amisol ATF, that stuff is supposed to be a generic atf that can be used in virtually all applications but this is not so in practice. Even their reps on the mopar forums will tell you that some people have trouble using it in their newer transmissions due to the fluid's deviations from atf4. The shudder, bump shift, bump stop and slip problems it can cause are rare- but exist just the same. Their oil on the other hand, is another story and is well worth the money. Still, the drivability problems Amisol can on occasion cause in an A604 is not going to cause wear problems while Dexron (or dexron + additives) will. There are numerous reasons behind why dexron is bad besides the stuff drivers notice like TC shudder or slippage.
The friction properties, as well as the breakdown points of the fluid are all uber bad things for such an already weak trans. The fast ware from the frictional differences will decrease the life of the trans, not to mention cause clogged solenoids (which then burn up) as well as other problems.
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I could have said an A604 aka 41Te4, but although basically true, that would not be 100% accurate. The later [the second one] while basically the same, has a few updated hard parts, ... etc.
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They are the same trans. There is no difference between the A604 and 41TE. All Chrysler did is change the name after the general public started to get wind of how troublesome the A604 can be. A rebuilt a604 is no different from a off the shelf stock 41TE.
Now a 42LE (A606) on the other hand... that is similar but different.
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Pulling the spark plugs might tell you if it is one or more cylinders that is rich... If they are all rich, I would start looking closer at the O2 sensor. If one is rich, then look at the injector itself (what year setup is this. if it it is individually fired setup, then it could be electrical.)
Just in case this is not known, the injectors have 12v to them all the time. The ECU switches the connection to ground... So in a short to ground between the ECU and the injector control would cause the injector to fire.
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I doubt an O2 alone would let it run rich enough to blow black smoke out the tailpipe... if its off our dead the ECM should be going off of its programed tables which, althougher richer- aren't rich to the point of causing problems like this.
Could also be a leaky injector if its bad enough. A short to ground would also make sense. The fuel regulator could also be off I suppose.
What kind of mpg are you getting?
Although a different car, I lost about 25mpg on my 3.3 Dynasty some time back when I had a half dozen things go wrong at once componding the situation. Bad 02, thrown diff pin, limp mode, no exhaust system (at _all_ ), bad coolant temp sensor all at once set myself up for problems.
A bad O2 will not always throw a code especially on preOBD2 cars. It took two years for my bad o2 to finally throw a code and there was no doubt about it being kaput before that.