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Does the OBD-200 device wake up and continue to read the mileage from the vehicle?

Yes, the OBD-200 device wakes up when it detects movement via its accelerometer and then resumes regular operation.

The OBD-200 works by reading the current odometer or DTC (distance since trouble codes cleared) values from the vehicle’s OBD-II line. It compares these values to the last known value and adds the difference to the current mileage stored on the OBD-200. If the unit goes to sleep, it will perform a read immediately upon waking up. Additionally, it will read the mileage any time it receives a core data read request (the 'N' command) from the FR in the fuel lane or from an MR-55 device. These are the primary methods used to read the mileage and engine hours from the OBD-200