Sounds like you're referring to earlier posts which I can't find. Assuming that the only code given in your car is 232, speed sensor absent, a few facts could be established though:

1) That dealer obviously is trying to push this into a horribly expensive repair.

2) The speed sensor code does not primarily indicate faults at the PNP or ignition switches. It should not be the sign of a transmission requiring replacement.

The speed signal is produced by the speedometer. Does it work properly - not erratic - and is the odometer ok? A one wire lead carries the signal directly to the trans ECU which in its turn during certain conditions will give this code and flash the lights mentioned. There is a separate code for erratic/faulty speed signal - the 232 primarily indicates either speedometer fault, broken signal connection or faulty transmission ECU. BUT there could be other possibilities too since these trans ECUs perform a lot of internal calculations involving speed signal, engine rpm signal and trans rpm signals. The way to find out would be monitoring the speed signal at the proper trans ECU pin. Volvo has got scan tools to perform this operation but an electrically skilled shop/specialist maybe could help, too.

IF the dealer haven't got scan tools, they should be able to try ECU and/or speedometer replacements after the obvious signal wire continuity test. At no parts cost for you until the fault has been found, of course.

The PNP switch is a known weak spot of these transmissions but in most cases, you get erratic starter/reverse lights symptoms before other problems occur. There also is a PNP switch fault code but it unfortunately isn't always set when the switch fails.

Before any electrical troubleshooting, the other weak spot - wiring harness connectors under the car (at the front left of the trans, 2x 8 pin and 1x 4 pin) should be checked and cleaned if necessary. Checking ground and power to the trans ECU won't hurt, either.

Btw, if the code is reset it will be set again after only a few seconds of driving if the speed signal really is gone. Try the gear selector wiggling procedure and have the dealer reset the code for a new driving test if they haven't already performed one.

Everything I've mentioned however should be very well known facts at a dealer shop with access to Volvo repair manuals and special tools. Try finding another one which does what they're supposed to - fixes the problem.

/Martin
--
65 121, 73 165