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The orange "arrow" shaped lite you are talking about is volvo's indicator for a driver whose has little experience with a manual transmission. It is an indicator for "when should I shift into the next higher gear." Some folks set it up as a econo-indicator, some used it to help teach their kids or wife when to shift up, and some just ignored it. It is adjustable according to the B-manual.
Not sure when it was initiated as a standard item, nor how long it was used before V-cars dropped it. I had one in my 89 240 wagon.
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