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They're not as high failure as you may believe. A lot of issues that you've probably read with electric seats more have to do with all the leaks and issues that C5s have that many owners don't properly address. It doesn't take much to soak a connector that is lying on the floor under the seat and cause all sorts of DTCs to throw.
If you remove an electric seat to install a manual seat then you are going to see a lot of SCM DTCs stored. The SCM scan lines are primarily for the seat and there are about a dozen or so of them that will throw stored DTC codes if a seat is removed (the codes are primarily for position of the seat, but obviously with an electric seat not present it's going to think all codes are being thrown.).
Other than that you would just lose whatever functions are in the electric seat, which is honestly a shame because there are a lot of very good functions coupled to the electric seat and if the car is equipped with memory package. I thought lightly of the Easy Entry/Exit feature on my C5, but ever since I've used it it's become a god-send in terms of not only being able to get in and out easy but also alleviating wear on the outer side bolster.
Obviously if a good racing seat is being installed then coupled with any other modifications like a proper cage there are tons of advantages. In addition to obvious safety advantages weight is the biggest. The electric seats in C5s are quite hefty.
I recently upgraded my seats from factory electric to a nice set of manual Corbeau A4 seats - I removed the seat module as well. I do not see any warnings or check engine lights at all, but as Velocity_Vette stated you will see error codes if you scan for DTC codes. The DTC codes are not a problem, since you obviously intended to remove functionality.
Now if you have programmable side mirrors, you will want to leave the seat module installed so that those will still "remember" and function.
my wife is 5'3' I am 6 foot the memory seat function is priceless ??? we also AutoX and switching drivers in our C 6Z without the memory is a pain !!!!
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I agree with Velocity Vette. The C5 electric seats are pretty robust so I wouldn't be in a hurry to take them out just because of something that may or may not happen.
I swapped both my power tracks to manual tracks and dont miss a thing. You will loose your memory function but I see it as if your the only one who drives your car regularly then having memory function is pointless. You have the option to keep the SCM plugged in underneath the manual seats,,,this will enable you to maintain both the memory on the mirrors and the telescopic steering wheel functionality. Aside from these small things i dropped 35+pds of weight off the car and eliminated any loose or rocking seat issues with the manual rail swap. Win-win in my book.