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Re: stuck in overdrive
Overdrive relay usually fixes the problem. With the engine idling quietly, press the OD switch on the shift lever. Do you hear a click? If not, it is probably the relay. Located behind the glove box, passenger side. toward the center console. Pick up a used one on Ebay ( about $10 bucks) and swap it out. Cured my problem right away. Be sure you change the correct relay because Volvo hides several back there. I would buy the spare, then match it with the one now installed.
If not the relay, you will need a new solenoid in the transmission. About $200 installed.
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This is common to the AW70 transmission when the rear bushing has been left very worn for a period of time. The rear shaft wear heavily on the main transmission housing causing the pressure not to build enough to engage the overdrive gear.
All the ones I have come across have it. Basically it allows gearbox and engine to sync for greater fuel economy when you are not 'town driving' I.e doing more than 25 MPH. I've always left my overdrive engaged as you usually get better fuel economy. To try, take it onto a long open road, engage overdrive and bring her up to speed. Then turn off overdrive and watch your fuel gauge. You can pretty much see it drop.
When the button is pressed and the arrow indicator light is on the overdrive gear is not being used and you only have 3 speeds. When the button is pressed and the light is off you have overdrive. Normal use you should not see the arrow.
Hey try this. Buy an over-drive bypass plate from IPD (www.ipdusa.com). I had the same problem with my 91 Volvo 940 Turbo. My overdrive solenoid went out, but that would have been $160 to replace. The bypass plate was only $40 and it fixed my problem.
The failure of the relay for the overdrive is a common problem with this vehicle. However, before you replace it, the wiring that goes to the overdrive solenoid needs to be checked. It tends to rub on the transmission housing, and then it shorts out the relay. If you replace the relay without fixing this, it will destroy the new relay!
To access the relay, pull the glove box housing, an it's right behind the center console.
You have an overdrive relay issue. The tansmission is really a four-speed box, but the OD selector either locks our fourth gear or allows the car to shift normally into fourth. I use the OD on my volvo all the time, because the revs drop in half when the OD is activated, The relay is located behind the glove box, toward the center console. $10 buck on Ebay and your transmission should shift correctly again. I would try that BEFORE more expensive fixes, like OD solenoid $200 or transmission control module. Just for kicks a picked up a spare ECU on Ebay for $10 because these get costly if and when they go. Easy fix, though, a couple of plugs.