I am the original owner of a 1994 850 T with 60M miles. In December 2001, the arrow designating a shift to a lower gear started blinking. The operator's manual states that this signals a possible transmission problem. The vehicle was brought to the local dealer's service department. I had not experienced any significant problems with the transmission. Testing indicated that there was a "fault" in the module that indicated that there was "slippage" of the transmission, and that the vehicle required a new transmission which would cost approximately $4000 for and $1000 for labor. I was rather astounded that a vehicle with 60 K used for normal driving (which had not been entered in stock car racing), advertised as long lasting, would require a new transmission. In doing a web search, I found one comment which stated in part: "Volvo 850's from 1993 through about 1995 were notorious for having weak automatic transmissions...Many of those transmissions failed before 40,000 miles. Cheap...junk."

I would appreciate learning whether other Volvo 850 owners had experienced similar problems and whether there is any support for the quoted comment. Further, whether the module controlling the transmission element is reliable. (I have had constant "Check Engine" lights, which have all been erroneous and require a replacement for $1,000; otherwise the vehicle could not pass a smog test.) Your views would be appreciated.