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Hello,
Sounds like a bad PNP switch (park/neutral position switch, located on the transmission). My wife's '95 850 Turbo used to do the same thing and I've seen it a lot here at the shop. What happen's is this: the transmission is physically in drive, but the switch tells the transmission computer (TCM) otherwise. The TCM doesn't realize the the transaxle is in drive, so it cannot tell the transaxle when to shift. One thing I can suggest, move the shifter to manual low and then back into drive (from the bottom). This usually helps, at least for a while. You may here advice suggesting to "ratchet" the shifter back and forth between positions rapidly for 20 times or so. This rarely works and only prolongs the inevitable. You should probably replace it soon. Anyway, let me know if you need anything else.
Joe S. - Volvo Master Technician
2000 S70 AWD, 1995 850 Turbo, 1981 242 Turbo w/intercooler
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