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Funny story: I got my 1990 240DL Wagon for $150 from a company that sells cars that have been donated to charity. The donor card had the words "No Reverse" scrawled on it. and they told me it would need a gearbox rebuild. I test drove the car a total of 10 feet before buying it: five feet forward, then, gingerly, five feet back into its space. It turned out that it had "No Reverse LIGHTS!"
Anyway, it's a pretty common issue, as I understand it, that the switch itself fails. Unfortunately, it may just be the hardest part in the car to get at. If the automatic is like the stick, you pretty much have to drop the gearbox. On the other hand, since it is pretty common, if the switch has been replaced previously, it has often been relocated. Are you the original owner, or do you have service records?
-EdM.
Franklin, MA
'90 240DL Wagon "Lola"
'72 1800ES "Galadriel"
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