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The B was a better engine than the first which was a problem, but the C was same as the C12 block. The early 3176 was built where the crankcase was cast iron and there was a aluminum block bolted on top of the crank case and it was what held the liner and pistons. It was a source of oil and coolant leaks. And when you replaced the liner you had to pull the aluminum spacer of to replace the gaskets. It took too much time to over haul.The c came with the one piece block and crankcase like a real engine and better electronics. But still 10 liter engine. The problem with the engine was it was a oil leaker in the front around the front cover and most had the air compressor shaking lose. The good part was it was a light weight and could have good power. The C12 took its place and was a almost 12 liter engine.

The first engine had a ECM on it like a 3046 PEEC. It had some sensors in the wrong places. You could not get to the boost sensor witch was stuck in the ECM and it was down low with a hose running from the air intake to it and water would from in it and steel in the sensor which was lower. This would stick the sensor and in most case in the low boost mode cause no power.Later engine was changed some.

Being this is a 94 year it will have the later model engine but still is not a C12.

Glenn Akers

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I'm a Cat man for a living, with all the tooling and information needed.

i would pass myself, parts are available, but electronics are costly and there are less and less people left that can work on them.

The 3116 is the engine with a "Detroit" style fuel system. I love those lil guys, a true mechanics engine.

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Grandson worked for HO Penn and now   works at Carter Caterpillar in  Fishersville, Virginia,  here's what the "old" timers there  said of it , for what it's worth.  
Dependable but wait for parts. Common problems with 3176 B or C
 oil leaks= front cam cover gasket can be a big leaker(must pull cam and front cover)
oil seepage= Aluminum spacer deck under cylinder head.
noisy air compressor drive= wear in splines of air compressor and gear in front cover(annoying mostly)
water pump weep hole can plug= put coolant in oil, IF water pump seal fails
Cam followers (mostly injector cam followers) can have a bushing failure and ruin the cam(somewhat of a big job)
If the front support bracket, on the upper, left side comes loose(supports front cover) and is neglected, then the front cover can break and cause oil leaks. Its repair is almost the same as a ruined cam.
Head gasket can seep coolant into oil pan, but many improvement have been made over the years.
These engines, do run copper sleeves, in the cylinder head(that the injectors seat against), and they can loose their "seal"  against the cylinder head and allow fuel into the cooling system, too. 

Occasional rear head bolt failures.

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"OPERTUNITY IS MISSED BY MOST PEOPLE BECAUSE IT IS DRESSED IN OVERALLS AND LOOKS LIKE WORK"  Thomas Edison

 “Life’s journey is not to arrive at the grave safely, in a well preserved body, but rather to skid in sideways, totally worn out, shouting ‘Holy shit, what a ride!’

P.T.CHESHIRE

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