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As others have stated, be sure your grounds/connections are clean. If all is good put a thermometer next to the sender, I use the probe type carried by AC techs. A bad ground will cause it to read low so you're probably OK.
Pull the gauge out and remove the black locating pin on the bottom, using a very small jewler's screwdriver (slot type) find the pot' and adjust the gauge to match the thermometer.
I used to adjust mine for winter and summer conditions as if it's right for one it will be off for the other (true with all that I've seen)
These are not precision instruments, Volvo used a coolant temperature sender for the sensor and it works well only in a narrow range. Lately I've gotten lazy and leave it in winter mode so it reads hot in summer.
Dave Shannon
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Dave Shannon Spring Valley, California '63 P-210 '67 1800s '73 1800ES '88-240 my pages
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