103 C is not melt-down, or warp-the-head hot. No need to panic. It's hotter than the system should run if all was well, but it's no need to panic.
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The "Fan Fail" light's name is mis-leading since it has nothing to do with an actual failure of the fan. It's really a Relay Fail light. The circuit looks for voltage before and after the fan relay. Either the Otter switch, or the A/C switching on will result in 12 volts going to the 'upstream' side of the relay. If the relay works, then 12 volts will appear 'downstream' of the relay, and the Fan Fail light does not illuminate. If 12 volts does not appear 'downstream' of the relay, then the relay has failed to switch on and the Fan Fail light illuminates.
That's all it means, and it has nothing to do with the fans. The fan motor can become disconnected, or fry, or just fall out of the bottom of the car. As long as there's 12 volts 'downstream' of the relay, the circuit is happy and hasn't got a clue what's going on at the fan itself. Even if the Fan Fail light isn't indicating a problem, make a point of periodically checking out the fans.
A flickering Fan Fail light indicates the relay's internal contacts may be marginal, or the continuity between the relay and socket, or socket and wiring terminals may be poor.
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For the socket and wiring terminals, try treating them with Pacer Technologies "Rail Zip II". It's available at hobby shops that cater to the model train crowd. It may be in the train section, or it may be in the glue section with the other Pacer products... ZAP super glues.
The train guys use it to wipe the brass rails to remove all oxidation and optimize continuity. Just apply a little to both sides of the connection, then plug it together. No need to work the connector back and forth (although, it wouldn't hurt). Just apply the Rail Zip II and leave it to do it's thing.
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The relay is a high current, 70 amp unit for which you won't find replacements readily available at every boutique parts store. Most common HD relays are about 30 amps, some are 50 if you shop around. 70 amp will be harder to find, so you may as well just contact a Lotus vendor.
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Get under the car while the fans are running and check that all three are running. If the relay works, and the Fan Fail light doesn't switch on, there can still be one or more fans not working. With less than all three running, the coolant temp may creep up when the car is just sitting, idling... ie, no ram airflow through the radiator inlet.
Each fan motor is individually grounded. If all else in the circuit is good, but the fan isn't running, then it's not uncommon for the ground connection to be corroded and not making connection. Clean all the grounds with a wire brush, maybe even use some Rail Zip II. But for re-assembly, I've found it helpful to coat the chassis ground point, the terminal, and nut & bolt with Anti-Seize.
Regards,
Tim Engel