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transmission lights flash / trans shift normally 900 1993

The winter mode arrow is flashing as well as two lights on the transmission mode selector switch. I have read the FAQ's and found the info on the failing gear position sensor . I have 2 questions:
is it correct that the sensor failing will cause the transmission to only use 3rd gear?
has anyone successfully repaired the sensor, rather than replacing it?

Thanks in advance for your help.

Robert

93 960 Wagon
95 850 Wagon T5
66 1800S
75 164E






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