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There is something fishy about your posting.
In all my years of working on cars, I have never seen a temperature gauge read normal when things weren't normal. Yeah, they don't work, or they are pegged one way or the other, or they read high or low all of the time etc., etc., etc.. But I have never seen one to fail in the normal position.
If I had a penny for everyone who told me "the oil light never came on." Or "the temperature gauge never rose," I'd be a rich man.
As one of the other posters stated, your car does have a low coolant indicator--all 850s came with one. Your assertion that Volvo is to blame for not equipping your car with such a sensor is baseless.
As for other cars having features to prevent overheating, I'm not so sure. The Web is full of postings for overheated '90s Hondas (the same era as the 850).
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