Is this part of the fusible link for fire suppression?

[wazzabie]

The GM fusible link contains this lug at the connection were it is between the fusible link and the wire. This is were I have circled in red.

If the fusible link does break is the purpose of the lug to prevent the main wire from catching on fire?

[kwmech]

The wire will burn out before the 'lug' does anything. I don't think the lug has really anything to do with the link other than connect the 2 wires. In the past when I've had vehicles come into the shop with burned harness' at the starter I just cut the wire at the lug and splice in some link wire and throw some heat shrink over it

[Dead Parrot]

Lug may be a simple 70's era way to seal a connection between two wires.
Might be a last ditch safety to keep a bare live end from flopping around in a metal engine bay if the fusible link vaporizes.

[wazzabie]

I thought that if the fusible link wire sheathing burns that perhaps if it were not for the lug the normal wire could catch on fire.

[Corts60]

Agree with others that it is just a covering for where the fusible link connects to the regular wire. Nothing else special to it. The fusible link itself is the protection, not the part you have circled.