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Hello,
Your description matches how an P1800 and early 1800S dash would have been configured and not a 1967 1800S.
On the P1800 and 1800S to the end of 1964, the overdrive switch is a toggle switch that is mounted on the dash and the switch on the column opposite the turn signal switch operates a special relay that would blast the 2 standard horns plus a 3rd even louder horn.
The horn button in the center of the wheel would sound the standard 2 horns, but you could sound all 3 horns by using the switch on the steering column on the 1961-1964 P1800 and 1800S.
The exact same switch on the steering column is used as the overdrive switch on 1965 and later 1800S and both the switch on the dash and the 3rd horn are eliminated.
The overdrive switch is different for the 1970-1973 1800E and 1800ES.
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Eric Hi Performance Automotive Service (formerly OVO or Old Volvos Only) Torrance, CA 90502
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