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I guess the factory didn't use paint or anything on the underside of the fender. I figured the fender was the ground, but this whole setup seems pretty sketchy/half assed.
Yeah, you're right. Chrysler, et al, a company known for their engineering, was just a little short in the electrical endurance aspect. Then again, no one thought the cars would be loved for 50 +- years.
I put longer studs on the housings. Then I ground the paint off the underside of the fender, used captive lock-washer nuts to dig into the metal. Next was a ground-wire to be screwed into the core support, with a second lock-nut to the stud. When finished, I'll hit the whole deal with a squirt of under-coat.
My Bee has Barracuda style signals with just a sheet metal screw down thru the top. Rt side quit working & bulb socket was totally fubar. Cut it out & used a RadioShack led assy in socket spot, WITH an extra ground. I cried long&hard when the Shack went under.