This is just an example of the part that needs replacing:
http://www.fcpeuro.com/products/volvo-ignition-switch-850-940-960-760-9447803
There are 4 Torx screws under the steering column cover that need to be removed. The screws are 2 different sizes and hard to get to. Once the cover is off, it is a piece of cake to repl the switch.
If you don't need AC where you live, you could find a new short serpentine belt that drives the power steering and alternator and bypass the compressor.
How long will a Volvo last? As long as you take care of it. There are some here on the Brickboard that have over 500K miles on their 850.
Yes, there will always be a 'problem' lurking, but that is why there is a Brickboard. If you want to get a replacement for the 850, you will need to save your pennies for something newer than 2003. That is still 10 years old!
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My name is Klaus and I am a V♂lv♂holic
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