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Most likely a bad vacuum modulator or no or little vacuum reaching the modulator. Check to see if there is any vacuum going to the "can looking thing" on top of the trans. It may also be a broken or misadjusted T.V. cable going from the throttle valve to the trans. (if it has one i cant remember) Take it to an actual TRANSMISSION mechanic they cost more per hour but less likely to hear the all too common "it needs a new trans".

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Q: Why does a 1990 Ford Festiva automatic transmission not shift into third gear?
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