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Trunk won't latch S60 2002

My trunk won't catch when I close the lid. I tried using a screwdriver to press the gray arm (inside the latch mechanism) but I can't get it to latch. I get no response when I unlock it from the remote (and I don't hear anything internally trying to work). I've also checked the fuse for that part of the system.

The car does recognize that the trunk is open (via the dash message) and the lights don't blink when I lock the car.

Could it be a bad latch or something else?

Thanks.







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