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Have you checked the coolant level in your radiator? GM puts a cooling unit in the bottom of the radiator, and that is connected to the tranny cooling system. Check for oil(tranny fluid) in your coolant of the radiator. Don't panic if you see it, just pull the radiator and have it fixed, or buy new radiator, then change all fluids in tranny and radiator.
The cooling system may be low on fluid. The code is for a temp sensor high voltage which could be a wiring problem or something else. The sensor needs to be in contact with liquid coolant to work. The computer is not getting an acceptable signal from the sensor, so the check engine light is on and the fan runs for safety. The sensor for the computer is different than the one for the temp gauge.
just to the right of the thermostat. there are two similar looking sensors side by side. Match up the wire connection on the new ECT sensor to the existing sensor. This will help you determine which of the two sensors is the correct. Then you can remove the faulty sensor and replace.
more information here: http://www.obd-codes.com/p0125
If the coolant level (antifreeze) level is low there may not be enough fluid in the system for the temperature sensor to register a proper reading ( think of it as holding an oral thermometer just outside of your mouth).
Insufficient fluid passing through the heater core (small fan that blows through a small heated radiator) may not be enough to produce heat.
However: At increased speeds the engine may be heating what little fluid there is to a point to supply heat to the heater core, and register on the temperature sensor.
these cars are infamous for coolant contamination cause restrictions in the heater core. i suggest performing a heater core flush followed by a complete cooling system flush. i have seen this dozens of times in these cars and this has been the fix nearly every time. good luck!
The Taurus has Two temp sensors. One for the dash, which is isolated, then one for the PCM, it also controls when the fan relay should actuate. Its a 2 wire sensor, just above the thermostat. If you remove the harness from that sensor, and the cooling fan comes on, at any temp, (should take 5- 10 seconds) then thats your fault.
Any cooling system fault in JULY/AUGUST is a big deal. This sensor is 22$ and can be installed in a COLD engine in minutes.Very small cost for accurate gauge so you can monitor gauge and know if real overheating conditions exist.I would probably spring for a new thermostat while Im servicing that sensor and coolant just for good measure. stay cool