Hi All:

Well, after driving the car for a couple months without 4th gear lock up and torque converter wine, I took the car on the highway for a few exits at 65 mph. I stopped at a gas station near the house and when I put the car in drive it didn't move. The speedometer read I was doing 30mph, but the car wouldn't move. When the tow truck guy got the car on the ramp the car leaked a couple quarts of tranny fluid on the ramp. Moral to the story is that if your tranny starts to wine, it's probably not going to be around too much longer. Got a 5oo.oo one with 80K on it from a Mass. salvage yard with a one year warranty. 900.00 to install. Will let you know how it works.

For others that read your post, always check the axles if the speedometer shows you are moving. If the ATF leaks at the axle hole, the probable cause is the axle slipped out and is no longer engaged with the tranny.

If, however, the ATF pushes out of the dipstick hole or weep hole in the side of the casing then you have a dead tranny.
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My back feels better when I sit in a Volvo seat

How could the axle slip out with the ball joint still in place?

This only happens to folks who have had their axles replaced and due to improper seating. Not just Volvos, but all FWD cars.

On 850's, it is usually the passenger side as the driver's side has a circlip that 'clicks' into place. The right side can come loose...

The differental is not limited slip, so when an axle comes loose the side that is free of drag is then given all of the power. The speedometer shows the car moving. Some ATF leaks out of the axle hole, helping pinpoint the loose axle.

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My back feels better when I sit in a Volvo seat