What O/D does is basically control the transmission gears. When O/D is ON, you drive with all 4 gears or speeds (if equipped with 4-speed tranny). When O/D is OFF, you drive with only first 3 gears. (...tranny does not use the 4th gear, so you can get the constant power to tow or whatever) That's what I heard from a mechanic, anyway.

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