Fail-Safe Mode
WARNING: This page is about a different car, the 2002 Nissan Sentra, 2002 Infiniti G20, 2001 Nissan Sentra, and 2001 Infiniti G20. However, it is still accessible from the selected car via links, so may be relevant.
TCM has a Fail-Safe mode under which vehicle always runs in 3rd gear even with shift lever in "D", "2" or "1" positions (sluggish, poor acceleration). When Fail-Safe occurs, next time key is turned on, O/D OFF indicator light will blink for about 8 seconds. Fail-Safe may activate without electrical circuit damage (such as excessive wheel spin or immediately following emergency braking). Turn ignition key off for 5 seconds, then on to recover normal shift pattern.