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Replace the PNP switch rather than trying to repair it - repairs don't work.
I have never seen a flashing snow flake, nor have I seen the ESW lights flash as you have described.
I assume the ATF looks more pink than dark red, I hope.
As for your mpg in "E", that doesn't make any sense. "S" allows for higher shift points and earlier downshifts, but rarely has more than a 2 mpg difference from "E" mode.
Is it possible that the tranny wasn't shifting out of 3rd? Even the torque converter lock up will only make a 200 rpm difference.
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My back feels better when I sit in a Volvo seat
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