Yes, it'll fit and work fine IF it has the bellhousing cutout to clear the crank sensor (didn't Turbos get 2.4, and thus the crank sensor, later than the NA cars?). Technically, you could swap bellhousings (once you've got the tranny out, the bolts holding the bellhousing to the tranny case are visible, they're INSIDE the bellhousing), but the bolts can be a little reluctant to budge after all these years.

If your engine is stock, consider upgrading to the AW71L used in the later 740 and 940 non-turbo cars. Lockup torque converter will save you a few MPG on the highway. If you've done a +T conversion or other hoontastic mod and that's what killed the AW70, then you should absolutely stick with the plain AW71 out of a turbo 740/940.

And always drop the pan and take a good look at whats in the bottom before buying a used tranny. Chunky stuff = BAD.

John
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1989 245 233K / 1993 945 127K