300e Speedometer fluctuation

My 300e's speedometer will run up to and peg at 160MPH the true speed being 25MPH. It's intermittent. Sometimes if works fine. On a percentage basis, I would say that it malfunctions 75% of the time. Is
there a bushing that has too much lateral play in it? Is there an adjustment that can be made? Thanks for your help.
JB 99 E55 88 300E
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There is a speed sensor at the transmission... either that or the speedometer is bad.
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Tiger wrote:

Thanks Tiger. How does the transmission speed sensor work? Where is it situated?
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