I have a 1995 850 GLT with 106,000 miles and it apparently needs a rebuilt transmission. The "up" arrow flashes continuously and the "Check Engine" light remain on. I have taken in the car for the same problem at 33k, 67k, 69k, 89k, 103k, and now at 106k. The first time the problem occurred the dealer changed the PNP switch, other times the code was cleared and I don't know what the Volvo dealer actually did. When I took the car in at 103k, the dealer simply changed the oil (eventhough the oil was changed with synthetic oil prior to taking in the car), changed the spark plugs (even though the spark plugs were changed when the car went in for a major maintenance at 90k), and cleared the code plus charged me a bundle. At 106k, the lights went on again so I took the car to an independent Volvo mechanic and they were not able to fix the repair and stated:

"No engine codes logged, found 122 code logged in transmission system, break in solenoid S1 circuit, cleared code and road tested, during road test, car would not shift and 122 code reappeared, problem is internal in transmission, recommend taking car to Volvo dealer for repair, entire transmission may have to be replaced".

When I asked the Volvo dealer for an estimate, they told me it would cost about $3,800 for a rebuilt transmission. Since the problem initially occurred while the car was still in warranty, I am questioning how big of a problem this really is. Most of the 106,000 miles are highway miles and once on the highway, the car runs nice. But now the problem lights remain on and the transmission slips when the car comes to a stop after operating it for 15 minutes.

Any suggestions?

This is a very common problem with the 93 850. I've had 3 trannys in the past 6 months (due to questionable mechanics). But, don't spend that $3,800. Most of what you are paying for is the part, and it's shipment from Japan. I received my last transmission (that carries a lifetime warranty) for $1,000 and $700 labor (including a 300 mile tow). Don't let those guys gouge you, the car is good, just needs a little work.

Was the transmission fluid ever changed? How does it look.

Might be worth a try to meet with the Volvo area rep, with all your documentation. However, I wouldn't give favorable odds.

The transmission fluid was flushed and changed at the 90k service and according to the service record, the transmission fluid was found to be black and burnt. I did talk with a Volvo Customer Service representative and he stated that since the vehicle's transmission did not fail during the warranty period, that nothing could be done other than I talking with the Volvo dealer on the price of replacing the transmission. I really like my Volvo 850 but after this incident, I'll probably sell the car and buy a car based on the latest JD Power customer satisfaction results. Reliability is important and accountability is a big issue with me. Thanks for your input.

Update on transmission problem - I took the car in to an independent mechanic who repairs Volvos exclusively and after the shop replaced the tranmission solenoid, wiring harness, and camshaft position sensor, the car is running better than ever. The mechanic also power flushed the transmssion fluid. The total of the repairs was about $1,000, which is far less than $4,000 to replace the transmission. I have to agree that most of the supposedly Volvo transmssion problems are not transmission replacement problems but are largely electrical components related to the transmssion. The car is running like a champ!