Help me fix my Chrysler 300m(transmission in limp-mode)?

[Anthony]

Vehicle: 1999 Chrysler 300m 3.5L HO. Auto-stick

Back a couple of years ago, I had transmission problems that ended up calling for a new one. At the time I didn't know about limp-mode or changing out the speed sensors. I admit, I was retarded and took it to the dealership. But it fixed the problem so I was happy. Until I started getting the same problems.

Fast forward to "just past" the warranty on the transmission, and I started getting limp mode again. So I went out and bought two new speed sensors. Got one changed out (the other is blocked by my exhaust I believe), and when I pulled the old one out, the nipple was covered with what I assume is trans fluid and metal shavings. VERY FINE metal shavings, more like a metal powder. First thing I assume is that metal shavings = bad transmission = more financial rape from the dealership. If I have to buy a new transmission, I'm selling the car for scrap.

Anyway, is there a chance that the junk may NOT be metal? or could it be a result of the transmission breaking in? If this is the case, I'm thinking if I can change out the fluid and filter, then it should fix things. Here's where the issues (and my question) REALLY begin..

Its been quite a while since its even been looked at. I just parked it and left it. I am looking to spend about 300 dollars trying to fix it, and if it doesn't fix it, and I have to buy a new transmission again, I wasted that initial 300.. This money will go for a new ignition switch, battery, trans, oil, and air filters, fluids, and other stuff that it may need to get running again. Is there a chance that replacing the fluid and filter (and sensors) will fix the transmission problems, or is it safe to assume its shot and not worth fixing?

 

[MikeJ]

the material on the sensor is normal. I see this all the time. There is always a bit of fine steel shavings on the speed sensor. Next you need to find out why it is in limp in mode. Go to a shop that can communicate with the TCM and find out what the code is. Then tell me what it is and I can point you in the right direction. Most of the limp in conditions are some sort of electrical problem and not a dead transmission. Save yourself some money and have it diagnosed first before slapping parts at it. I deal with this situation every day and I always advocate finding out what is wrong first before you start guessing. That could get real expensive.

 

[Complover]

Just a suggestion, you don't have to necessarily take it to the dealership. You could try reputable places like Amaco. When our 02 Sebring started jumping or hunting, they replaced the solenoid for cheap. Also, if you live in a midsized city with auto groups, start searching for a different Chrysler dealer. we have five in our area, but we go to a family run auto dealership whose only dealer is a Chrysler jeep dodge dealer. Always great service.