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You have a sticky or worn ignition switch. When the problem occurs, if you jiggle the key slightly counterclockwise, things should go back to normal. Try spraying some lube in to the lock cylinder side through the key oppening. I would also recomend replacing the electrical portion of the switch. Accessed through inst. cluster opening and/or under dash. Switch has a simple "pull off" electrical conector and is attached to the back side of the lock cylinder with 2 screws. The switch problem has been affecting ALL volvo models for years and years.
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