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Starter fails to disengage 200 1981

Had some problem with starter in the past (but unlike your case it wasn't willing to engage :) )

So the starter wiring should be:
* top nut - straight to the battery
* two male connectors at the right side offset 90 degrees - blue-yellow wire to the lock (It loses the yellow stripe halfway at intermediate connector and comes solid blue to the lock connector labelled as "50". According to my "Haynes" wiring diagram.) the 2nd male connector is wired to the 1st and is unused in my case.
* single male connector at the left side - brown wire to bypass the ignition coil's current-limiting resistor.

I can see only three cases when starter is still working after you let the key spring back:
1) [electrical] problem with the lock, it doesn't disconnect the blue-yellow wire from +12V line (faulty lock or incorrect wiring)
2) [electrical] problem with the relay contacts (that copper plate inside gets stick/welds to the bolts)
3) [mechanical] the spring-loaded relay stem (that has a copper plate on it) fails to move back in place due to bent inside sliding contact (comes outside as single male connector for brown wire) or stem is blocked some other way or the main axle is worn/dirty/overheats so that the sleeve cannot slide back thus blocking the relay in "ON" state.

I'd just take the BL-Y wire female connector off, short the freed male pin to the top nut with a screwdriver/crowbar tip (starter engages and rotates the flywheel and crankshaft) then take the screwdriver off (starter disengages). If so then case 1) is the cause.
Else 2) or 3), both require starter disassembly.






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