C0263 Porsche 968 is defined as Knock Sensor Circuit Range Performance (Bank 1 or Single Sensor). This refers to camshaft timing, which in this case is over-retarded. The PCM then uses this data to provide the right strategies for the fuel delivery and ignition timing of the engine.
Possible Causes :
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If the scan tool has that capability, and the scan tool can operate the IMRC valves, then the problem is either resolved and a simple code clearing is all that's left or a new PCM would be called for. Look for missing ground strap or a rusty ground where the fuel tank is grounded to the frame. Check for damage to the wiring harness connector.
Diagnostic trouble code C0263 Porsche 968 is not difficult to diagnose and repair. Thus, it always pays to have a qualified technician to look after your vehicle should this error code arise.
Diagnosing this code requires the engine to be in good running shape, without unmetered air entering the engine. If other codes that relates to misfiring condition, lean running or air entering the engine is present, then you must first fix those error codes before C0263 Porsche 968.
Fortunately, C0263 Porsche 968 is a fairly common OBD code, meaning that it applies to all makes and models of vehicles made after 1996.