What is the purpose of the metal collar over the distributor cap of a 1980 VW...

Dennis

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...Scirocco 1.6liter engine? The metal collar has 3 wires: one from the ignition coil, one from a condensor outside of the distributor, and one is a ground. There is a black rectangular "relay?" attached to the outside of this metal collar where the wires attach. What is this thing? What is it called? What does it do? Thanks
 
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