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What size are your tires? 200

That is strange. I also have an '86 240, M46 4spd+OD. I get 2500 rpm at 65 mph running stock tires (185/15). At 75 mph my tach reads a "hair" under 3000 rpm.

I think that your speedo is off. I am not aware of different final drive ratios in US 240 wagons. Pretty much all of the M46/M47 cars had a 3.31 rear end from about '81 until end of production ('93). Automatics usually have a 3.91 rear end, however the overdrive in the autobox has a higher ratio to compensate for this. In theory, the cruising rpm's should be the same (manual vs. automatic).






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