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Potentially bad news; when ours started getting quirky, delaying before engaging, it finally lost reverse too.
~$4000 from a Saturn shop or $3000 for independent. After good referrals, we used the independent and the tranny held for 27,000 miles until the engine blew at 56,700 miles; it dropped a rod cap.
I 'sold' it to my son for $1.
The worst car I have ever owned and my first US car in 35 years- it is also my LAST.
Your valve body and possibly input shaft nut need to be replaced. The valve body's booster valve is worn down and won't create pressure. Before it went completely out it slammed on the input shaft nut and loosened it.
You need to replace the valve body and retorque the input shaft nut. The transmission is not junk. The above needs to be replaced and change the filter and fluid and do it every 20K miles.
I have the same car and had the same problem, when you pull down the head liner you will find the motor for the moon roof. i disconnected the motor so that i could analyze it. i found that the gears in the moon roof motor are made of plastic and most of the gear teeth were chewed off. i disconnected the wireing harness from the motor and left it unplugged, i then pushed the moon roof back into position and tightened the screws to the moon roof. That is the way i left it for the past 2 years, because i was not about to spend the money t fix the motor.
the time it takes to use one quart is not the figure I need, how many miles does three weeks represent? 1000 miles per quart is ok, less and you will need new rings in most cases, which of course means an engine overhaul.
What this code means is the trans is slipping, the most likely cause is internal parts failure or shift solenoid issue for 2nd gear, but based on what I know of this code you will end up getting the trans overhauled.