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I put a Trac Tech Lok Rite or something like that in my 83 242T (now sold). There are two companies that make these auto locking rears that replace the spider gears. I forget the name of the other company. They cost $300 to $400. They are very similar to what Volvo put OEM in all RWD rears from 92 on, as I understand. The Volvo rear disengaged above 25 mph due to centrifugal force (these things are spring controlled). They drive normally, but provide power to the wheel with the most traction rather than the wheel with the least traction (like in an open rear). They disengage on turns. You want one for a Dana 30 rear. But look for the ads in the 4 x 4 and domestic V8 magazines and then call the companies to ask about a Volvo specific application. Rumor is that the Volvo version of the Dana 30 may be metric and most of these auto locking rears are SAE, if that makes a diference.
Not sure about fuel economy. I noticed no difference. I don't think much from that perspective. Spend the $400 plus installation costs on gas if you want to save money. Maybe you could salvage a rear from a later Volvo with the Volvo auto locking rear in it. Get the whole axle from the newest car possible, but make sure the speedo sensor (if applicable) matches yours and that the axle ratio is the same. Or go lower numerically if you want to save money (and lose performance), but adjust the speedo if necessary to the new ratio. You might gain some mpg or offset any loss, at some cost in acceleration.
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