It would be nice if the factory covered you, but don't count on it. The tranny was the weak point on 850s. In 1997 the tranny got a little better, so if you get a newer one, get a 1997.
If you have to replace the tranny, find a reputable junk yard and have your mechanic install it in your car. Our upper midwest yard in Wisconsin has them for $300-400, tested.
Remember, never put it in drive from reverse if the car is still rolling, even a little bit. That also includes the 1997 version.

Klaus
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(1975 164, 1995 854T, 1998 V70R)