I have a 1989 240
recently replaced radiator and installed a new trans filter and fluid.
was running great till i noticed trans fluid dipping from tail pipe.

now the trans is slipping and seems the compression on engine is low

no trans fluid in water system .

any insight to this problem is appreciated.

love this car and would like to get more use from it

thanks

Jeff

If it was trans oil coming out the exhaust you would be blowing out heaps of smoke. If you have red coloured engine coolant it could be that.

My guess would be transmission fluid leaking and running along the underside, ending up on the tailpipe.
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1992 745, >500k km (now gone, but not forgotten)

Check all the fluid levels.

I will go out on a limb and state that whatever is dripping from the tailpipe is not transmission fluid from your transmission. Perhaps someone is playing a joke on you?

Check the compression with a gauge if you think it is low. Don't just guess.

Maybe take it back to where it was serviced and have them take a look or re-do what they have done.

Now this is a brain teaser!

Is the engine oil level changing at all?
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Current rides: 2005 Volvo S80 2.5T, 2003 Volvo V70 2.4NA, 1973 Volvo 1800ES (getting ever closer to road worthiness)

You didn't do an engine oil change at the same time and mix up the oil.