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Help: 240 temp gauge STILL reading high 200 1993

I've been addressing a number of problems on my new 93 240 non-turbo wagon, but one I cannot seem to solve is the temperature indicator on the dash. It is reading high (10-11 position) and I've tried all the usual fixes. Not sure what to do next so I'd like to know what others think. Here's what's been done so far to address the problem:

Picked up 240: temp gauge shows low temp, 7-8 position
Replaced broken thermostat (stuck open) with Volvo OEM and replaced coolant
Temp now reads high (10-11 position)
Tested wire, ground to block, temp goes to max
Replaced temp sensor - IPD (single yellow wire one)
No change - temp still reads high
Inspected temp compensation board - there is none!
Installed IPD bypass kit (pin 1 and 3)
No change - still reading high

When first warming up, the temperature comes close to hitting the red zone, and then drops back down and stabilizes at 10-11. It never drops lower, and only gets a little higher if we accelerate hard or climb a long hill. It never goes into the red.

I'd like to know if I'm running 'hot' or if my sensor, gauge, or thermostat is defective. Any thoughts or pointers are greatly appreciated.

Thanks.






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