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About the tranny shifting issue. Of course, check the fluid level first. Yes, I know you are a DIY person. I just want to hit first things first. Put on a cotton glove as the dip stick is tucked tightly away and the radiator fan can start up at any time with the car warmed up. Volvo says that the fluid is a lifetime fill but I would drain and replace the fluid every 50,000mi or so. If the fluid is clean and at the right level, there was a software upgrade on the earlier US S40s that had something to do with poor shifting/gear selection. Knock out the easy stuff first then get the dealer to upgrade the software.
On the air bags, you should have the dealer troubleshoot that one. They should not be due for replacement. My 2002 S40 has a decal inside the driver's door that says they should to be replaced in 2012...eleven year lifespan. The car wasn't in an accident was it?
BTW: A strap wrench takes the oil filter housing off nicely. Use synthetic oil since it has a turbo.
FCP Groton has great Mintex replacement brake pads for S40s.
mormit
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85 245DL 260,000mi V15cam It takes a licking and keeps on ticking, 02 S40 Mmmmmm,
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