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try replacing the output speed sensor on the transmission housing. Just a small part (about $30 at auto parts stores), it screws into the transmission housing and sends a signal to the computer. Without this signal, computer cannot decide what to do with speedometer and cannot shift transmission properly. I replaced one on my daughter's 1999 Plymouth Breeze, with the same engine as the Neon. She had the exact symptoms you do, and it solved them all.

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Q: What is causing my 2000 Dodge neon to not shift out of low gear and the speedometer works and quits?
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