Checking the setting
WARNING: This page is about a different car, the 2004 Volvo S40, 2003 Volvo S40, 2002 Volvo S40, 2001 Volvo S40, and 2000 Volvo S40. However, it is still accessible from the selected car via links, so may be relevant.
Remove the lever. Install adjustment tool 9995475 on the gear shift linkage rod. Check that the shaft is in the N position. The groove on the tool must align with the marking on the gear position sensor.
If adjustment is required, see the following procedure in this article.