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One possible reason for this malfunction is a discontinuity in the speedo sender wiring. One the differential, look for a little plastic plug. Is it plugged in? If it is a sedan, then there should be a connector for those wires right next to the power antenna. Hook up a DVM and check the continuity. May be that the ever-popular Volvo wiring has disintegrated. If that isn't it, then continue to trace the wire up to the front of the car. I believe that the wire you want is the white one, but i may be mistaken. Good luck!
-Aaron Singer
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