Thread: D2 td5 auto select reverse m&s flash

could be the common transmission switch failure. Heaps of info about this on here. Does it go into limp home mode. Altho' the dash gear display and red light on the selector usually flash and as I take it your saying thats not happening, maybe switch just starting to go. The price of a new transmission switch has just about doubled in recent times so you'll need to do a lot of price checking if thats your issue

The selector switch (aka the XYZ switch) is probably failing having received some water ingress from the air-conditioner drain tube above it. The exact symptoms depend on which of the micros inside the switch are dirty or have failed. I had problems with mine recently and as a work around until I got time to replace it I would start in neutral then select drive - 98% of the time the flashing M&S lights would not appear. If I started in Park then went to Reverse or Drive the lights would always come on - solution was turn off the ignition select neutral then restart.

The switch that failed on mine was only 8 months old, I've returned that to ZF with a warranty claim. Meanwhile the second hand one I had on hand as a spare is fitted and working fine.