No winners so far
- this is actually a resistor fitted to later 1500 model cars which feeds the headlight dipped beam circuit when the lights are in the side light position. The effect is to have the raised headlights dimmed when on the side (parking) lights. There are two 7.5A fuses in an add-on block in the fuse box that takes the return from the resistor and jumps onto the the dip beam circuit. Maybe just a euro thing? It's a good plan as why have the pods up on side lights with nothing illuminated? Unfortunately it just puts more stress on the slide switch as now there's extra un-relayed current on side position too
This is a factory "mod" that goes hand in hand with 2 relays that are are also in add-in blocks: a black one in a black base and a brown one in a yellow base. I've had an '87 and '88 and both have these - the black one switches in the resistor and the brown does nothing useful as the feed to the relay coil (that comes from the slide switch) also feeds the relay contact that goes off the stalk dip-switch - it looks like it was a factory attempt to (finally) relay the dipped beam headlight circuit, but they then scored an own goal when implementing it
The brown relay is the poorest quality available and the slightest squeeze causes it to switch (not good in cramped fuse box) - it's really just another weak link in the headlight chain and best removed so that the contacts in the base are jumped to restore some reliability. If it mis-switches you loose the dipped circuit instantly
It really shouldn't smoke, but it will get hot in the side light position as it's dropping 6v or so - perhaps it just covered in some cleaner/degreaser that's burning off. It you do find it in a wiring circuit, let me know, but 29 years on I'm still looking...