It happened in this afternoon. And my car is 1995 850.

This morning I drove the car for about 40 mins and everything was fine.

In the afternoon, I tried to start the car. Just found the ABS light was on and the gear was locked at the parking position. I couldn't push down the small button that releases the gear. Of course I was pressing the brake pad when I did this, but it seemed like the system did NOT know it, so it wouldn't allow me to change the gear. I tried several times but no luck.

At night, I tried again. This time the ABS light was off and the gear moved as normal.

I have the feeling that it's due to some sensor, but not sure. What shall I do to make sure this won't happen.

Thanks for any suggestions.

 

Shake the key a little bit. Mine does the same thing every blue moon. I need to fix the abs unit so my traction light and abs light are always on. Those rare times it does it I will start the car and only the abs light will be on and like you said I can't shift out of park. I just have to wiggle the key a tad and then the traction light will come on and It is like nothing happened.

What this entails is the ignition switch contacts are getting worn out. Very common with the age of the cars. If this keeps happening a lot then I would replace it fast because when the switches go they make it seem like you have a major electrical problem. Also only get a Volvo switch, no aftermarket. I will need to do this to my T-5R in a little bit, unless it starts happening more often.

 

This is happening on my car, those lights coming on when the car is turned on and having to move the key back a bit. What does replacing entail, that is how hard would it be to replace. I am a semi-beginner in fixing cars.

 

It is very easy to do. Eventually just take off the plastic cover around the steering column behind the wheel and it is right there. Simply take out and put new one in. Rspi has a video on it for visual reference;