Having opened everything up to expose the latch mechanism ...

There is this little lever with an orange plastic handle built into the mechanism. In one of its two possible positions it seems as though it would prevent the "emergency escape" handle inside the trunk from functioning.

Correct? Why would they build in such a thing?

Doesn't seem to be related to valet mode. The handle is only accessible when everything is disassembled surrounding the mechanism. You couldn't get to it if you were locked inside the trunk.

I'm missing something.

 

You're missing nothing! First, note that if you shut the lid with the orange lever in the wrong position, the lock will not unlock by any normal means and access will be v expensive!
It would seem that that lock unit is a Ford based item (?) and also fitted in Transit (?) vans where it can be locked /unlocked internally.

 

Edit: Thanks, Astromorg. We must have hit "post" simultaneously. With the lever in the "wrong" position, I found the trunk lid button did not work, but the key in the rear trunk-opener did. Seems I might have dodged a bullet!

 

Dennis, you know what curiosity did to the 'Cat' ?

 

Words to live by, Jack. I made a classic rookie mistake here: wiggled the lever before noting carefully which position it started in. Uh, let's see, I think it was this way ...

So what was I doing in there anyway? My trunk started being hard to close, and would sometimes pop open as I was driving. I looked everywhere ... lubricated stuff, adjusted the rubber stand-offs, verified where the latch claw was hitting the receiver. All looked good,so I figured I better get down into the latch mechanism.

But as soon as I got in there ... everything was back to normal. Huh?? It turned out that earlier, in putting the right-side trunk liner back in place, I had somehow left the emergency handle in a position where it was partially pulled open. The latch was only closing half way or so.

A four-hour, self-inflicted problem. Arrgghh!!