If the car is otherwise working OK, it's probably your instrument cluster (IPC). There is an electronic sensor on your transmission that sends a signal to your engine computer (ECM) and the IPC. Your transmission changes gears in response to this sensor, so if it's shifting properly, and the other gauges are ok, the ECM should be OK
SOURCE: 2004 suburban my speedometer isn't working right.
you need a new cluster it is a common problem there is an extended warranty policy on these also check with your dealer
SOURCE: 1991 cavalier speedo register the wrong speed and unstable
It is the cable that connects to the trany..
SOURCE: Both speedometer & tachometer not working, both reading wrong.
There was a recent class action law suit settled with GM for this exact problem. You can google gm speedometer lawsuit and get lots of information. Unforutunately for most people I think the warranty was limited to 7 years and 70,000 miles. Which isn't a lot of miles for most people.
If you car isn't covered by the warranty there is a way to "reset" the speedometer.
You can turn the ignition slowly like you are going to start the engine. There is a very small "dead" space where you will see your guage lights go off.
What you want to do is cycle the ignition switch from off to that dead space. Each time you do it your stuck speedometer will move towards zero about 10 mph. So if its stuck on 40 you will have to cycle it at least 4 times.
At first you will probably actually hit the ignition and the engine will try to start.....just release it and try it again.
I know this because I have a 04 avalanche with 80,0000 miles and it has this problem about twice a month.
SOURCE: speedometer
The stepping motors in the gauges go bad. do a search on ebay for CHEVY SILVERADO INSTRUMENT CLUSTER for cheaper repair options. The dealer charges around $300.00. It will continue to worsen.
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