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I was recently at the shop having my AC fixed and we watched the high side pressure skyrocket. The fan was not on. With the fan on, the pressure dropped by almost half. Sustained high pressure can cause the compressor to fail. New ones cost about $200 from Hancock Industries in TX. In town, you need the fan. On the highway, there is enough airflow without it, but it won't hurt to run it. In my opinion, the fan should be wired to come on with the AC. You can do this by splicing into the compressor wire and using it as the trigger for a relay that turns the fan on. You may also be able to source a colder fan switch for the radiator. Check the part number on yours and compare it to the specs in the Volvo green books. There were at least two switches, one of which is, in my opinion, too hot. Run a colder engine thermo with the colder fan switch. The cooling system is more efficient if the two match up. If you have a 197, use a 189. If you have a 189, consider a 180. I would not go colder than a 180 engine thermo.
Philip Bradley
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