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Hello,
Start with a NEW complete speedometer cable.
The inner cable will lose its rigidity and gets springy, which can cause the speedometer to bounce.
This can be caused simply by age or by a deterring inner surface of the outer speedometer cable sheath, which causes friction on the inner cable.
If this does not cure the problem, it most likely needs the speedometer to be serviced, adjusted and recalibrated.
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Eric Hi Performance Automotive Service (formerly OVO or Old Volvos Only) Torrance, CA 90502
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