Even if they relocate the O2 the catalytic converter will still get a very lean exhaust stream and will favor HC instead of NOX (orthe other way around), so emissions increase disproportionately. I suppose they could reroute exhaust from the deactivated cylinders back into the intake for the same result but they would have to partition the intake as well as have additional plumbing/switching from the deactivated runners, which takes up more space and requires more to take apart for repairs. The deactivate valvetrains seem pretty simple these days so I can see why a manufacturer would go w/ 'em.
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