The cable length would not be an issue if it doesn't get snagged anywhere while you are driving - that is why it runs behind a shield in the original installation.
If you are not sure you have the correct sensor it may be that its electrical specifications don't match the original. The catalyst efficiency check is one of the ongoing monitors that depends on the rear sensor and it will fail if things are even a little off. That may result in a failed emission test, check engine light going on when there is no problem, etc.
I would recommend trying to find out if you really have the original type part or equivalent.
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