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I had a similar problem on a 1981 model 240. Overdrive kept disengaging when cruising at 60 mph.
I traced the cause to the overdrive inhibitor switch. This is on the outside of the transmission (on a 240 - assume 740 is similar). The switch prevents overdrive being engaged unless the gearbox is in 4th gear. On my car the switch had a worn contact which kept opening and causing overdrive to disengage.
It took me weeks to trace the cause, but only 30 minutes to replace the switch.
Mike Walker
London, England
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