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Catherine;
I agree with Patrick...the uniqueness of the IGN switch/armored cable/coil assembly MAY contribute to a mechanic having difficulty troubleshooting (IGN + terminal is not available for checking, see graphic below...left is standard IGN system he is likely familliar with, right is as found in you car), and this MAY result in a rush to failure judgement on mechanics part...
Please forward the following URL for troubleshooting info and circuit diagram to your mechanic...it shows the interaction and internals of IGN switch including Start and IGN Power contacts, and have verify his findings...if there is no change and assy must be replaced, I request you send me the old one for an objective post-mortem examination.
Info: http://www.sw-em.com/Volvo%20Ignition%20from%20Scratch.htm#Vintage%20Volvo%20Ignition%20system%20and%20the%20Armored%20Cable


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