I found this schematic on that OZ site. its a bit later and some is in swedish but it seems to show similar to what found initially in Hanes, it does look like the key should have a hot wire to the starter, and it should go through the park/neutral switch on its way.
I can't seem to post a link but if you go here:
https://ozvolvo.org/archive/
then search for "740 -89" then it comes up..
this is a bit fuzzy and some is Swedish and this schematic is a year or two newer than my car but it does indicate the same wiring layout basically. there is a bit of additional , sort of greyed out detail, that is hard to read but maybe that's for a diesel model.
Since I could not detect a wire that is hot with key turned to pos# 3 (crank) I must have something wrong there. You both seem to think it should be like that and feeding the starter via the park neutral switch which cuts power to starter when it is not in park or neutral.
I could open the key switch and see if I can clean it but I have two there, they are easy to swap, I could get another from a standby car..
I can't imagine what may be mixed up. no intentional changes were made.
there is a splice to the "blue with red" that was added near the key,
that could be non original , it was soldered and wrapped up in there and the way it was taped seemed like it hadn't been undone so I figured maybe some factory mod.. It had been taped with a cloth tape which had turned all sticky , no heat shrink but I dont see how one could put heat shrink over because the wire is crimped into the switch socket and this splice was near that socket.
that added wire is the same size as the other two red wires ( big ones) that feed the key from battery, I'm not sure where that runs. obviously it worked before and had not been added anytime recently. I initially figured maybe it was to run a radio and had been added , or similar.
I bought the car some 12 years ago with stock radio and tapedeck, just changed it for the same one, because it was going crackly, bad solder joint probably. it had 88K now about 160 K The car or the radio hadn't been messed with that I could tell. no added options. no alarm or anything additional.
I do have 12 V at the two big red wires , so the key has a power feed. there is a big black wire at the key, not sure why, it is not grounded. there is a yellow and that's so the alarm can "ping" if I leave the key in.. it works if I depress the key.
I probably just need to get in there with my meter and try to figure out why that wire at the key is not hot when the key is in the crank position pin (50 the pink), it should be hot with key turned, it is not, so I need to find out why and put other ideas aside.
if all is right , I should be able to ohm between that key wire and the trigger blue with green stripe , at the starter and get continuity. if I do my issues are not in that engine harness plug. If I dont get continuity there I will open that plug , Id like to clean it anyway.
pretty sure I could rig a button up to start the car and still use the park neutral switch, bit mickey mouse I know.. I doubt both switches I have are bad with the same issue.. I can usually just check any switch with a meter but the keyswitch is a little complicated, it probably has a few wafers or sections in there, or similar complexity.
I'm tempted to try to pop the key-switch open , see if I can clean it.. the idea also came that I might drill a small hole to wash inside with deoxit and not disassemble it to see springs and stuff take flight. fill it and dump it a few times, maybe add some electrical grease?
I think if its not bad dont fix it, I need to diagnose it, not come up with some funny-fix to avoid confusion. its going to be one issue not 10 issues and I dont need to create any more before I find the cause. I'll recheck the key-switch , and the neutral park switch.. its likely I inadvertently created the issue and less likely some gremlin just crept in under my hood.
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