Your querry got my attention because I just replaced my M47 transmission on an '89 240DL. I had trouble getting into 1st and 2nd gear. I pulled the transmission and inspected the guts, but could see nothing but a some brass dust and shavings in the oil. I took it to a Volvo dealer to repair, but they do not do transmissions. They referred me to a good transmission shop in Dayton. They worked for about one hour on taking the transmission apart and reached a point where they could go no further; they did not have specialized tools.

At that point I started calling salvage yards. The prices ranged from $450 to $700. I got the one for $450; it was shipped Columbus from PA and came from a '90 with 107K miles on it. After I put it in, my engine would not run right. I sent out a querry and someone responded that if I took the flywheel off, make sure I get it back on the right way. Well, I learned the hard way. I had to pull the transmission again and reposition the flywheel. That solved the engine knocking problem, but now the engine will not rev up. If you pull the transmission, inspect the clutch thickness and the surface on the pressure plate and flywheel. I decided to grind the flywheel 0.005 inches since I have a lathe and grinder attachment, and did both surfaces (clutch and pressure plate mounting) so the pressure would be correct on the clutch disk. The dealer prices for the clutch, pressure plate, and release bearing was over $400. NAPA sells the kit for $200 plus, and Autozone has it for $165; the kit also includes an aligning tool.

Since I did not remove all of my bearings, I cannot tell you whether or not you will need special tools; it did not seem to me that I would need them. I did have to make new gaskets for the bell housing-to-transmission and the rear cover plate. Also, and I mention because it was a surprise to me, the proper oil for the manual transmission is Type F or G automatic transmission fluid--1.6 quarts. My Bently manual and dealer mechanics confirmed this. I had the transmission shop advise 90W oil, and when I mentioned that the manual called for ATF, he suggested that I mix the two types 50-50. I decided to follow the manual and use ATF exclusively.