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make sure the fluid is full and the vacuum line is connected to the vacuum modulator on the back of the transmission, also you could install a new vacuum modulator that might cure the problem, have you changed the transmission filter? it could be getting plugged.

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Q: Why does your turbo 350 transmission come out of 3rd gear when above 60mph and under load it seems to go to 2nd gear but if you don't rev rpm's up enough it just coasts?
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