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I'd first wonder about the condition of the actual horns that are sitting out in the salt spray. Are they getting any power when the horn fails?
The 850 steering wheel horn-contact issue is a longstanding problem, usually the contacts are physically broken. Did you get to see the old steering wheel?
I don't really think much of most Volvo dealer's expertise when it comes to complex problems, they're usually just as baffled as anyone else and their first suggestion is to start shottgunning $$$ parts into the car.
-BTC
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