Mercedes CLK engine issue resolved

Sounds familiar. I had a similar problem with my old Volvo, but it was the mass air flow sensor. Check engine light, power loss, the whole deal. The IAT sensor affects the air-fuel mixture, so a bad reading could cause those symptoms. Did you check the wiring?

I checked the wiring for damage, but not for continuity. Could a bad signal from the air sensor due to wiring mimic a defective sensor in car diagnostics and error codes?

Definitely. It's like a doctor getting bad information from a thermometer. The reading is off, but the thermometer might be fine, or the cable could be damaged. Check the wiring with a multimeter before replacing the IAT sensor. I replaced the sensor on my Volvo eventually. If nothing else works, take it to a workshop for deeper diagnostics.

I checked the wiring meticulously, but the IAT sensor was defective. The replacement was 155€. The car runs smoothly now. Thanks for the help.