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It's part of the shift lever mechanism. Sometimes it will get "out of synch" or the contacts get corroded or fouled. First test is to try to start the car with a jumper to the solenoid -- did you try that? You can also test the switch by connecting a test light or voltmeter at the small wire going to the starter solenoid connection -- if you get voltage there when you turn the key to start, the switch is okay and it may be your solenoid that's dead (or the contact inside).
I was able to cure a no-start a few weeks ago with contact cleaner sprayed into the safety switch on our '83, but I think there is a more complicated setup in the '89. Others may be able to advise on that.
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'81 GLT 245 @ 259K; '83 DL 175K
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