Your problem may be a faulty ignition switch. I had a similar problem with my 96 850.I have a 1996 Volvo 960 Sedan that is stuck in park, anyone know what the mechanism is that releases the lockout feature?
This is how you can test to see if if is the key: when you turn the car on and it starts, put the radio on. If the radio does not come on, the key is not in the proper position. Play with the key. When the radio comes on, I bet you'll be able to get it out of Park. If it does work, remember the position of the key. I need to turn mine slightly towards me after I start the car. If I don't...no lights, no radio, no getting out of Park.
When you turn the key does it trip a switch that activates a solenoid then moves the lockout in the shifter or is there a cable or linkage that moves the lockout?
Ditto to the aboveThis is how you can test to see if if is the key: when you turn the car on and it starts, put the radio on. If the radio does not come on, the key is not in the proper position. Play with the key. When the radio comes on, I bet you'll be able to get it out of Park. If it does work, remember the position of the key. I need to turn mine slightly towards me after I start the car. If I don't...no lights, no radio, no getting out of Park.
My 850 doesn't have the 'safety switch' so you can start it in gear with the clutch out. I prefer it that way, although it took a while to get used to the way it used to be,...I think I am going to leave my 960 like this and never worry about this issue again. Just personal preference.