I need to get one of those for when I do my exhaust system. I want to install it into the Y-pipe, so the O2 sensor will read both sides of the exhaust system. There is a possibility I may have to move the Y-pipe back further away from the headers than the stock position, and it will need a 3-wire heated O2 sensor.
I'd rather have a bung in both pipes, and if I was having a problem be able to swap O2 from one to the other, if I was going to worry about it. But since you can pull a plug wire and do the same thing, I wouldn't second guess GM too much on it.
Since one injector does not feed one side of the engine, unless you have a mechanical problem on one side of the engine, an O2 sensor mounted in one bank, upstream, will be fine. A bad valve, plug, whatever would get some help with diagnosis (potentially) when both banks are monitored, but you'd know there was a problem without needing the O2 sensor to tell you. IMO.
I suspect GM went the way they did with mounting the O2, because a problem is more likely to be electronic than mechanical, thus it doesn't matter so much whether all 8 cylinders are monitored or 4.
FWIW, in stock tune, my O2 sensor mounted 3+ feet from the cylinder head (past the header collector) would go open loop only at idle, and the instant I touched the throttle, would close. It ran absolutely no different with a heated O2. I got lazy with my open loop tune and simply changed it to go closed loop almost instantly after start, which the heated O2 helped with. I'm guessing GM went heated for a different reason, but with the same method...clean up startup/cold engine emissions by going closed loop faster.
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