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91 240 Loses Power 200 1991

I've had my 240 DL Sedan for about 8 months.
Right after I bought the car, I replaced the fluids and gave it the usual going over. I've kept up with the normal maintenance. Two weeks ago I replaced the spark plugs, rotor and cap. The engine ran slightly better and my mpg went up slightly. Last week, I noticed the automatic transmission was shifting rough in the first 2 gears, especially cold and from a stop. I checked the fluid and found it was low.
It looks like the tailshaft seal/bushing has gone on it unfortunately. I'll have to replace that. In the mean time I added fluid and noticed an immediate improvement in the shifting and smoothness.
However, this week I noticed a severe lack of power above 50 mph. The engine rpms sound higher than usual, the trans will drop into lower gear but the car just won't accelerate past 60 on flat ground. overdrive kicks on but doesn't seem to help any.

climbing hills, the speed will slowly drop off, even with the engine floored. The engine seems to surge slightly, then drop off, then surge again,
it eventually drops to a certain speed depending on the slope of the hill.

Overall acceleration has dropped off in the past few weeks as well. I've checked some of the usual culprits within the engine, (checked the fuel injection system fuses, cleaned the AMM) the Catalytic does sound a little rattly so its possible that its breaking down and clogging.

Any ideas of what else could be causing this? The engine not making as much power? or is the transmission starting to go?




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91 240 DL Sedan






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