I have a '92 240 wagon and the fourth gear selector seems to be stuck on (orange arrow on rt. side of instrument cluster always on) and won't disengage. I can depress the little button on top, side of gear selector and sometimes the lighted arrow blinks faintly, but does not change the selection. Any ideas would be greatly appreciated.
Prairie

 

Several things happen with that electrically switched 4th gear -

1. Relay goes bad - from old age - or insulation coming off the wires to the solenoid on the side of the trans - and the wire grounds out, frying the relay.

2. Wiring to the solenoid has a problem, or solenoid is bad, or wiring to switch in shifter has a problem - so won't change into 4th.

Solution - remove the solenoid from the side of the transmission. The solenoid simply opens an oil passage allowing oil to flow to the 4th gear passages. Use a Dremel tool or equivalent to grind a passage in the face of the solenoid allowing oil to flow between the two areas. Reinstall solenoid preferably with a new large outer oring and leave the inner small oring off. Snip the wire going to the solenoid

If you really want to be able to downshift from 4th to 3rd - you will need to figure out if the relay is bad and why it went bad. That will certainly cost more than 0.

Drive away happy. Fixed for the cost of an oring or free if you reuse yours.

If the orange light bothers you - remove the glove box, the relay is located to the left of the box. Unplug it and throw it away.

 

Thanks Hoonk, for the detailed message. I am presently debating whether I have the ability to correct this or need to take it to a local repair shop. It is getting more and more difficult to find mechanics who can still work on these 240s and I am hoping that your suggestions can help them solve the problem.
Prairie.

 

It's free to grind you own grove in the solenoid - or you can purchase a plate such as the one below -

https://www.ipdusa.com/products/4793...1239928-110397