Egr is for lower NOx, That is why they also retard timing and run a cold thermostat. NOx rises with cyl temps, advancing timing is good for mpg and power but terrible for NOx levels, so they retard timing and run a cold thermostat to combat it, the egr also serves this function. Retarding the timing rises EGT as the burn continues as the mixture exits the cyl, advancing the timing keeps the heat in the cyl. I use timing to help set up turbos on the old IDI’s, advancing that timing creates more base engine power but slows the turbo comparably, move the timing the other way and the turbo comes on sooner and boosts harder.
The new eco diesels have low pressure egr to help fight carbon buildup, by using post DPF egr, but it can’t be used all the time so they also have the normal egr and cooler circuit as well
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