Check Engine Light On problems of the 2001 Volvo S60

At 53,000 miles (February 2006) my check engine light, service transmission light and urgent service warning lights came on at the same time. However, I was I not experiencing any noticeable drivability issues. (with the exception of some slightly rough gear shifting - but I didn't think much of it). The dealer told me that the fault code was related to my transmission and that I need a software upgrade to my tcm (transmission control module). If the fault code returned after the upgrade, my transmission would have to be replaced. And that most likely (99. 9%) the software upgrade would correct the problem. In addition, I had to pay $340 for the software upgrade because I was 6 months / 3,000 miles out of warranty and software issues where not covered by the extended warranty (3rd party - easycare -[via Ford]). A few weeks later (3/5/06), the check engine comes on again and the drivability deteriorates rapidly on my trip home from work. High rpm's - little power - abrupt shifting. Fortunately, I was close to home (within 1 mile). It felt like the transmission fell apart. I brought it to the dealer (3/8/06), after two days of 'testing', I'm told the etm was replaced at no charge and to come pick up the car. I picked it up and could not leave the dealer driveway. They apologized profusely and said the etm was replaced but noticed that there is still a problem. After a few days of troubleshooting by the dealer, I was informed that the car needed a new transmission (and I had to pay an additional $200 for extended warranty CO-pay).

Car would suddenly lose power, causing unsafe situations in traffic. Warning light would come on along with check engine light and message saying "reduced performance". Failure was intermittent at first and instrument lights would go back to normal.