Start relay smoking after AAW install.

Just shooting in the dark.


The red wire might be touching the relay housing here.

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ALSO...

I suspect there is quite the spark when you attach the battery cable.

On many / all the A body cars the feed from the alternator attaches to the same post as the red from the battery.

I don't see that on yours. Where does the alternator feed attach?


ANOTHER THOUGHT...

There should not be any connection from the red to any other wire ( except alternator if it was hooked up per OEM)

So if there is a load on the red wire it has to be going through the relay's contacts.

Since you are not sure if the red wire is what is heating enough to create smoke, ( I suspect it is since the battery post is getting hot) the logical thing is that the relay or the wire has a short to ground.

The relay looks a bit bulged (yellow) and old.
I would remove the relay and test it with an ohm meter. I bet you will find that the large post with the red wire is fully or partly shorted to ground.
Possibly from tightening the nut


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