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Q:

Transmission Service Urgent Message, will upgrade software fix the problem? on 2004 Volvo S80

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To repair the new transmission, the agent quote me 6000+, Volvo had the reputation on the softare failure problem. I changed once many years ago, and now the problem came back.
(1) Answer
It's a good idea to update the software first, delete all the diagnostic info in the computer and drive it, as long as it's safe to do so. I doubt this will cure the issu, but it's worth a shot.