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If I am correct, this is a stock shield that was at least used on 1977 Vettes, as mine had one.....and it was installed with a standard metal leaf spring. So, I don't think GM added this in any many as a heat shield for a fiberglass spring, given they didn't install fiberglass springs on a 77.. So my guess, it somehow shields heat from the differential???? Anyone know why?
if the OP's profile is correct the car is a 75 convertible. The part was used from 75 to 77, 356918, Shield, RR Ext C/Ovr Pipe. I agree the purpose is to shield the differential.
My '77 had a shield like that when I disassembled the rear end.
When I put the rear end back in, I chose to leave it out because I'm running side exhaust.
It seems to me you must consider all the heat coming from the engine compartment and exhaust, including the cat. When you are at speed that hot airflow is passing under the car and the diff.
the concern would be the overall effect on the diff oil temp. It seems no surprise to me that they installed this after the introduction of cats and higher temps to reduce emissions.
Too much temp in the diff will reduce its life expectancy
If your concerned about, dirt and debris, clean it out at each oil change or tire rotation, then re install it as factory thought it was helpful, if you don't like the look, then put it on the shelf,,