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I was just about to make a new thread to ask pretty much this same question. I have started using this technique recently (that is, shifting my auto trans into neutral when coasting) and I haven't noticed any strange noises or harshness when shifting back into drive. Sometimes I try to match revs, sometimes not. I would love to have a definitive answer as to whether this could hurt anything, since it does make a significant difference in FE and I would like to keep doing it. I'm inclined to think it is fairly safe since the torque converter is a fluid coupling device which is designed to slip.
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