I haven't expereinced this problem myself, but my wife has reported on two occasions having trouble starting the car.

Turns to Pos II OK - indicator lights on, but car won't start.

She locks the steering wheel and then it starts.

She also said that once (recently), her key spun 360 deg. then caught normally and the car started fine.

Any thoughts?

When it was newer, my '99 V70AWD did the 360-degree ignition trick once or twice, so it does happen. The dealer told us it was a quirk in the anti-theft system -- if the steering wheel isn't locked properly, or something, the key will spin. Jiggle the wheel and it stops doing it. Anyway, I haven't seen the symptom recur in years.

Our 1999 V70 GLT performed the same 360 degree trick. The dealer removed the key/tumble part (not the lighted immobilizer ring around it) and put in a new one. Has worked fine for 6 months now.

This problem has been reported for 98s in the past (you could probably
search the arvives and find a few posts). There was a recall
for some cars. People have reported (here) they have the problem even
though their calls are not on the recall list. So, I think you need
a new ignition switch. Recall info:

A. Service Campaign 83D Description

Volvo Cars of North America, Inc. and Volvo Canada Ltd have announced a service campaign affecting 1998 Volvo S70/V70 models. Approximately 5,831 vehicles in the US and 1,035 vehicles in Canada are affected.

The ignition starter switch should be examined for proper operation. An insufficient electrical contact during cranking may result in an open circuit in the power supply to the starter motor and the vehicle may not start. In affected vehicles the ignition switch will be replaced.

All owners of these affected vehicles will be notified by mail the week of June 1, 1998

B. Vehicles Involved

Assy plant 1 VTM
874471590-490221

Assy plant 2 - VEC
874476745-490980
875416734-435703
876416734-435703

Thanks for the info. The intermitant problem became a permanent one last night. Swung by my mechanic's last night - it does need a new ignition switch. it's not the electrical problem, though. It just mechanically failed so that the key doesn't turn.