There is a stumper for you. Yesterday as I was driving up a steep driveway with the wheel turned all the way to the right, I heard a bad rubbing sound. I parked and went to eat dinner. I drive home, and I notice that the transmission is late to shift, and does not downshift?! In the morning I noticed that the tire (now with tiny chunks in the tread) rubbed the fender outwards.

The transmission has 126k on it but it has been a while since a fluid and filter change. A few years. Before it shifted on time and crisply, with no sign of anything wrong.

Today I drove the car up to operating temp. While driving, shifts are extremely hesitant, the engine revvs up for the first shift, then it slams into gear, lurching the car forward. It shifts once again at about 30-35 mph, mind you the engine is screaming to this point. The car does not downshift correctly as well. At operating temp, I checked the transmission fluid and it was at normal levels. The fluid appeared to be a dark shade of red.

Also, I found no trans. fluid leaks on the floor.

So, my guess it that the vibrations from the rubbing tire lead to some gunk clogging the trans. filter. I don't even know where the bowden cable is or where the mechanical stuff that controls the transmission is, it's 1980, before the vacuum transmission.

Or perhaps the trans is toast, and I should junk it for a manual 4-speed? It worked perfectly up to this point.

This is a weird one.

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1980 240d
1999 SL500