I was stopped at red light when check engine light came on in 1996 850 wagon (56K miles). When stop light turned green, I stepped on accelerator and intially nothing happened. Gradually the car started to move forward and once it shifted to higher gears, it drove fine. This now happens each time I stop at light or stop sign. Check engine light remains on. The car drives in reverse just fine. Any ideas?

 

If you have an OBD II reader read the codes yourself and tell us what they are. If you don't go to Autozone and have them read the codes.
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Welcome to the forum, I hope you find it helpful.

I would like to know if you see the amber arrow flashing on the instrument cluster. The car could be in limp mode and is not capable of providing full performance.

The rest is stated by info2x.

If the give you code for "Incorrect Gear Ratio", check the transmission fluid level & condition. The fluid type is Dexron-III/Mercon and should be clear red and free of burnt smell.

Checking the transmission fluid level is much different from checking the engine oil. Refer to the following thread:

https://volvoforums.com/m_48928/tm.htm

I wish you luck.


JPN