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I would suspect you have a faulty electronic speedo head, have the cluster removed and have it sent out for repair of the problem. There is no at home repair procedure for this problem, it takes special equip to repair the speedo.
The speedometer sensors on these cars can go bad sometimes and often, and also low power steering fluid can effect their readings. Check your power steering fluid level and see if that is the cause, If not, the sensor is probably worn out a bit.
Im having trouble as well with shifting higher than second gear and me speedo doesn't work.checked all fuses replaced vss (both) and still no speedo or shifting. any ides would be great. I have power at buffer and tranny
A reliable fix would be to send the cluster out for repair, if in fact the problem lies in the speedo head. There is a bulletin for this car that states that at 20mph the speedo can be + or - 4 mph inaccurate, and its normal operation.
I suggest first having the alternator tested. The VSS on this car produces an AC voltage signal. The alternator also produces AC voltage, which is converted to DC before it is output to the cars electrical system. If any AC voltage is leaking from the alternator, it can interfere with the VSS signal, and cause the speedo to read higher, or even show that the car is moving when sitting still.
A vehicle speed sensor that is starting to fail could cause this, or less than likely bad wiring or connections, or yes, a bad cluster could do this... But how exactly did she notice the speedometer was 10MPH fast?? There are no real accurate speedometers in vehicles (Don't get me wrong they shouldn't be off by 10MPH) but there is a 5 or so percent difference high or low in many vehicles even with stock powertrains. I've plugged in with a diagnostic scanner on many vehicles and the dash speedo shows 60MPH, but the electronic speed readout on the scanner reads as low as 55MPH or as high as 65MPH
The speedo head or cluster is the part that houses the speedometer and tach, etc. now it may be the speedo cable that comes from the transmission to the speedo head that has broken. If so replace the cable and your back in business. If it is the head you can get them from your local recycle yard.