I've the same problem on an EFI CVH.  If the car is allowed to idle when 
stopped, the gauge goes up to slightly over midway, then the rad fan turns 
on (new switch just put in), and keeps it about halfway.  As soon as I 
start to drive at more than walking speed (i,e. not in a traffic queue!), 
the temperature drops to just above the blue and stays there until you stop 
again - if I take the car to work, I'm driving about 15 miles on the 
motorway, so this happens, and seems to have a big effect on economy.  The 
thermostat is working as the top hose stays cold until the engine warms 
up. There seem to be (at least) two temperature values of thermostat 
available even looking on ebay - 92 deg and something like 85 deg - the 
lower one seems to be quoted for and XR2i engine, but the Haynes manual (
http://megaflea.net/haynes/mk3%20fiesta/1595-03.pdf) quotes a 'start to 
open' value of 85 to 89 deg.  I changed several things at once last year, 
including the speedo/gauges, so for a while I thought it might have been a 
mismatch of the sender/gauge colour combination, and the rad fan switch had 
welded on due to a loose connection to the fand, etc, etc! Last year I put 
a cheap pattern one in - I think I'll go for a QH or similar this time, and 
will try a 92 deg one this time, and post the results.
Best regards
Chris C

 

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