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Hi Jesse .. and welcome to Volvo ownership. Can't tell you much about the automatic except that my car came new with one and it was changed to a manual VERY early on .... like in 1966 ... the car was bought new in Sept of 1965. The colour #89 was a short run of 1965 and very few 1966 cars and from your picture appears to be correct ... check out the picture of my car with this posting. The source of this colour is very interesting .... the underside of the WW2 Luftwaffe fighters were this exact colour Licht Blau and the paint number was also #89 ...
Good luck with your transmission .... as far as I can tell, from what I have heard from the original owner of my car, the best thing that can be done with them is to swap to a M41 with J type Overdrive. Having never driven my car as an automatic all I can say is it works great with the standard and the overdrive really helps out with mileage and quieter less frantic running on the road.
regards
Brett
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Brett Sutherland & the 1.5 million mile 122 CANADIAN www.ecvintagevolvo.com
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