I'll third that, it's the condensor for AM noise in your radio.
On the subject of rebuilds, my 240D ate 2 "proline" pep boys reman alternators, one after a month, one after a week, before it got a reman bosch, the bosch is still on it to this day. If I had known about the voltage regulators back then, I bet that would have fixed the problem on my original alt.
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1980 500SE/AMG Euro
1981 500SEL Euro
1982 380SEL
1983 300TD
1983 500SEC/AMG Euro
1984 500SEC
1984 300TD Euro
1986 190E 2.3-16
1986 190E 2.3
1987 300D
1997 C36 AMG
2003 C320T 4matic
past: 1969 280SE 4.5 | 1978 240D | 1978 300D | 1981 300SD | 1981 300SD | 1982 300CD | 1983 300CD | 1983 300SD | 1983 380SEC | 1984 300D | 1984 300D | 1984 300TD | 1984 500SEL | 1984 300SD | 1985 300D | 1986 300E | 1986 560SEL | 1986 560SEL/Carat | 1987 560SEC | 1991 300D 2.5 | 2006 R350
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