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Could be the compensation board in the instrument cluster. They are a known broblem in 240s. They cause the temp guage to read incorrectly. There are only 4 degrees between the middle of the guage and the bottom of the red zone, the compensation board stablizes the needle so fluctuations in the engine temperature don't cause the needle to act wacky. Is the fuel guage reading correctly? The temp and fuel guages share the same voltage stabilizer, which will cause incorrect readings in both guages when it fails. It could be a plugged radiator, which I've seen before. Take it to a radiator shop and get it flow tested.
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