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What Transmission Fluid is ok? 700 1989

The owner's manual for my 89 740 GL specifies DEXRON IID automatic trans fluid. Since this is no longer in production, would I be correct in assuming that DEXRON III is compatible? Or do you recommend the proprietary Volvo products?

I just acquired this car and the fluid looks pretty neglected: I was thinking of taking it to a shop for complete fluid replacement. Does this sound like a good idea? Thanks for your help.

Steve






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