Volvo Repair Questions? Ask a Mechanic for Answers ASAP
The flashing winter mode arrow indicates there is a trouble code stored in the transmission control module. You may be able to read the codes yourself. Check under the hood on the passenger side, right behind the headlight for an A/B diagnostic box. It looks like this:
If you have one, remove the cover for the A side and insert the jumper lead into pin 1. Turn the key on and press the button one time for about a second. The red indicator will blink any trouble codes stored. For example, blink blink, pause, blink, blink, blink, pause, blink, blink, pause would be code 2-3-2. After each code, press the button for about a second to go to the next code until one repeats. Once you have read all the codes, you can reset them. Press and hold the button for about 6-7 seconds and release as soon as the light comes on. Then press and hold the button for another 6-7 seconds. Then push it for about 1 second to re-read codes. You should get 1-1-1.
Just clearing them isn't going to fix the problem, it is likely to happen again. Post the codes here and I will tell you what is likely the problem. One very common failure is the gear position switch but it could be any number of switches and sensors or an internal problem in the transmission.
If you do not have A/B box, you will need to have the codes read at a shop with a scanner that can read transmission codes.