Yesterday, my 2002 S80 ignition key wouldn't turn past the first or "I" position. Searching the web, I quickly learned that there is a part located on the slider that locks the steering wheel in place that breaks thus jamming the slider and preventing the key from turning. Looking around at the cost (approx. $300.00 from Volvo ) for just the replacement ignition key assembly plus the difficulty of removing the old assembly which is mounted with bolts that have no heads and need to be drilled out, I searched for a way to repair or render usable the existing assembly. Long story short, using information I gleaned from a ignition key removal tutorial on YouTube at:

http://www.youtube.com/watch?v=TzUduzjR9W4

and from the Matthew's volvo site at:

http://www.matthewsvolvosite.com/key-wont-turn-in-the-ignition-past-i-need-help-asap.html

I was able to remove the shiny metal plate on the bottom after some Dremel tool work to free the edges learned from the YouTube video (see link I posted above). I popped the plate off and found the offending broken guide piece that seems to fail and jam the lock mechanism. By releasing the plate by grinding away the detented pieces of metal on the housing that hold the plate in place, you avoid wrestling with and bending up the metal plate during its removal. If the little piece (basically a little ear) is broken, then the metal plate pops right off. During the plate removal, the broken ear will fall out together with a conical spring. With the offending ear piece and conical spring now removed, the key turns fully in both directions. I just tapped the metal plate back into place without reinstalling the conical spring and put all the plastic parts back, which I removed in the beginning using a #25 star driver. The key now starts the car and I save the $300 cost of a new ignition key assembly plus the cost of programming and labor at Volvo, most likely a total savings of $600-700. The steering wheel will no longer lock, but that is not a worry for me. Also, if you get stuck in a parking lot somewhere and this happens to you, find an autoparts store and pick up a #20 and #25 star driver along with a small flat blade screw driver(1/4 inch wide blade. With the #25 driver, remove the 3 screws holding the bottom plastic trim to the bottom of the steering column and remove the top and bottom plastic trim pieces. With the #20 driver, remove the 2 silver bolts holding the ignition switch assembly onto the keyswitch housing and pull the black plastic switch assembly off. Place your ignition key in the key slot to allow the key chip to communicate thru the sensor to the computer and with the bladed driver, push blade into slot in key switch and turn switch to start. The car will run fine and get you home until you can do the repair I did above.

We will see how long I can go before something else fails. The car only has 137K miles on it, but doesn't seem to be all that durable. I am glad I did at full transmission flush at 70K miles as I would probably be looking at a new auto tranny as well. I highly recommend having a flush done where fresh fluid is pumped into the transmission cooling lines on one end, thereby pushing the dirty fluid out the other line. This flushing system available at many auto dealer service operations, uses a chemical that is added first to the old fluid and run thru the system and which loosens the grime and worn clutch material from the torque converter and other places to be flushed out with the old fluid.

This was posted 10 years ago, but the issue is still very relevant today. I'm glad the BB post is still searchable.

Matthews link in the original post is still live and I found it very useful: http://www.matthewsvolvosite.com/key-wont-turn-in-the-ignition-past-i-need-help-asap.html

My 2000 V70 (290k miles) steering wheel was locked/jammed and could not be unlocked => engine started because the ignition key would not turn past Position I. A rather helpless feeling when stranded.

I read the text and the comments in the Matthews post, performed the procedures of unscrewing and removing plastic covers on the steering column, and then from below lightly hammering on the bottom steel plate of the housing. The procedure worked, the steering wheel is now unlocking and the car is starting again.

I'm a bit surprised the procedure worked and fixed problem. I wonder how permanent this fix is. I think I'll carry the Torx 20 driver and small hammer for a while, if it happens again.

Anyone know what exactly is freed up internally from the hammering on bottom of housing?

Really helpful post, thanks very much XC70 back up and running - thanks again!

Replacing the lock mechanism is not as bad as it could be. Yes, the bolts that secure the lock are broken off at the head, but they do not have to be drilled out:

Using a punch and small hammer, just angle the punch at 45 degrees or so and tap it with the hammer to turn the screw clockwise. It loosens easily and can be undone with fingers at that point.

Agree, the lock design is poor. Locking steering wheels have been around for decades and should not have cheap metal/plastic parts.

The $300 replacement cost is a lot, but it does come with a spare key which will fit all your other locks. Considering what dealers charge for a lost key, a bargain!

I would NEVER use a MACHINE to flush the ATF. Most shops have it under a high pressure and that tends to put stress on the internal parts of the tranny. The car has a builtin pump which runs when ever the engine is running, much easier on the tranny and your wallet.