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Oil leaking from transmission 200

posted by  Tinho on  Wed Apr 26 05:52 CST 2006
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Hi There.
I have a 1990 240 wagon, which I sold to my son. I had bought it with 120 k miles and was my car, which never had a problem.

My son diligently filled up the transmission to the point that it was well over the max in the dip stick marks.
meanwhile, the car would not shift properly. So it went to the mechanic and he pronounced the car needed a new transmission. So the car sat for several months. I just started it, the car runs smoothly, and shifts fine. reverse and forward no problem. but after running it for a while, I saw smoke and looking under the engine, there is oil dripping onto the exhaust which is what is making the smoke. SO I stopped and with the engine stopped, checked the transmission dip stick. Still well over the max mark, almost 1/2 inch over it.IS this the casue of the leaking fluid and where would that be coming from.
IS it really a transmission problem or is it simply too much fluid. and how to remedy it?
Thanks for the help in advance






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