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Mine seems to be messed up, i think after e63 conversion its been re-located and its reading a much higher temperature then it should. Im guessing it closer to the motor now.
thanks
It is on the lower driver side of the front bumper. There is a small provision that the sensor is fitted. Maybe they forgot to install it in the bumper after the conversion and now it is hanging and gives you faulty readings.
Had the same question with my 2006 E320 CDi. It seems the sensor is located in slightly different places depending on model and year and it can be a pig to find as its quite small. So for my two pence worth, mine is located in the top right of the passenger side (UK) small front fog light grill. If you cant remove the grill from the front It can be best accessed by removing the wheel and loosening the lower part of the wheel arch lining. See photos for location.
I should add that on inspection, mine had failed due to perished wiring. I managed to replace some of this with new wiring and a new sensor plug but the original wire disappears underneath a lot of engine components and would be a real devil to replace if you tried to replace the whole thing back to the fuse box. On the plus side it was a very cheap part to replace: Sensor = £8, sensor plug £4 (although only seems to be available from China so could take a while to deliver, unless you can get a used one locally as I did). Hope this helps. https://www.ebay.co.uk/itm/253303745275
https://www.ebay.co.uk/itm/402335671806
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