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Sounds like the front pump in the transmission is tired.
It's not shifting into neutral, the 3rd gear "drive" band is slipping. Time for rebuild.
if its the GTA with the 5.7, the 700R4 is, in my opinion, the best transmission out there.mine is amazing, shifts on a dime, has a low first gear, and really runs great with the 5.7
700r4 gear shift lever want lock in place
Are you sure that it's third it's not shifting into, and not fourth? The transmission is designed to not permit shifts into fourth (overdrive) until the engine and transmission have warmed up a bit.
the sunshell gear is stripped out
Th350 is a three speed transmission, where as the 700r4 is a four speed automatic fourth gear being an overdrive.
Have the fluid and filter changed
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In a manual transmission vehicle, gear shifts work by using a gear stick to change the position of gears inside the transmission. When the driver moves the gear stick, it engages different gears to control the speed and power of the vehicle. This allows the driver to shift between different gears to match the engine's speed with the desired driving conditions.
you have burnt out the 3rd. gear and overdrive. you will have to have it rebuilt or replaced.
My 95 Corolla also has trouble shifting into third gear when the weather is cold. It may take 2-3 minutes on the highway before it finally shifts into third gear. It has 125k miles on it but has been occurring at least for the last 5k miles.