Not sure ... It's been a long time since I had an e12 ... Seems like they had an idle control box ... Or was that the e28 533i that was located in the glove box. I think it might have been the e28 ... So perhaps I'm just rambling on
It is the ignition module. It controls the coil and you will find that the coil positive cable goes to it. It is under the air filter box on the side of the inner fender of both e12s and e24s for that matter.
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