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Stepper motor inside the instrument cluster could be bad or info from the PCM to instrument cluster is wrong .
Speedometer
The instrument panel cluster (IPC) displays the vehicle speed based on the information from the vehicle speed sensor. The IPC receives a class 2 message from the powertrain control module (PCM) indicating the vehicle speed. The IPC calculates the vehicle speed based on the class 2 message indicating the wheel reference speed from the electronic brake control module (EBCM) if:
• The PCM detects a malfunction in the vehicle speed sensor circuit.
• The IPC detects a loss of class 2 communications with the PCM.
The speedometer defaults to 0 km/h (0 mph) if the IPC detects a loss of class 2 communications with both the PCM and the EBCM
You need a new instrument cluster my friend. But check with your local dealer first to make sure that there isn't a current software calibration for correction of this problem.
Assuming everything else is working either you need a new speed sensor or a replacement for your speedometer cluster. From your description I would guess the cluster. Look around on ebay and craiglist for a used replacement. Usually a cluster will fit many different years, you will be looking for newer and/or lower mileage.Do not buy a new one for that year vehicle.
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