Oil level sensor
Discussion
I don't know if it changed on the 964, but all the earlier cars had a bobbin on a swing arm bolted into the tank. If you look up into the offside rear wheelarch you'll see a round plate with 6 nuts holding it on. This is the sensor. If your signal has suddenly gone totally offscale it's likely a wire has come off or the sensor has failed. Usually the wire though as they get a lot of road crap.
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