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I had the same problem, I did move the gear shift about but had no joy, so did the pnp trick thanks to Bay13. Worked a treat! Apparently, Volvo do not use a water proof grease inside the switch and over time moisture gets in (switch is rather exposed) and corrodes the connections and plastic internal parts can break. Get secondhand replacement switch - I paid 27GBP and removed the grease inside and replaced it with a waterproof grease - Bob's your uncle! Easy job to do but might look daunting - don't be put off!
Good luck!
Deadfunky
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