Good replacement if you suspect it has gone bad. It is installed next to the thermostat and sends water temperature data to the car's computer. In the event of a malfunction, it will show cold or cold, resulting in a richer fuel supply, much like a choke trying to warm up the car, wasting fuel and causing a fast idle. If you're replacing this, you should probably replace your air charger, which does the same thing. The charger is a small electrical plug located above the air intake just after passing through the vent, see part TS10072 for an idea of what the charger looks like.
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