Here's what it likely means:
* Transmission Fluid Issues: Low transmission fluid level, contaminated fluid (burnt, or full of debris), or a leak are very common causes. Low fluid can cause overheating and damage the transmission.
* Solenoid Problems: The overdrive system relies on solenoids to control fluid flow. A faulty solenoid can prevent the overdrive from engaging correctly.
* Transmission Sensor Malfunction: Various sensors monitor the transmission's operation. A faulty sensor could be sending incorrect signals, triggering the light.
* Wiring Issues: A short circuit, broken wire, or corroded connection in the wiring harness related to the transmission can also cause this.
What you should NOT do:
* Ignore it: Continuing to drive with a blinking overdrive light can cause significant and expensive transmission damage.
* Just add fluid: While low fluid is a possibility, simply adding fluid without addressing the underlying cause (like a leak) won't solve the problem and may even make things worse.
What you SHOULD do:
1. Check the transmission fluid level: This is the easiest first step. Consult your owner's manual to find the correct procedure for checking the fluid level (often done with the engine running and at operating temperature). Note the fluid's condition – is it dark brown, burnt smelling, or full of debris?
2. Have it professionally diagnosed: A blinking overdrive light indicates a more serious problem. Take your Mazda 626 to a qualified mechanic or transmission specialist for diagnosis and repair. They'll have the tools and expertise to pinpoint the exact cause. Ignoring it could lead to a complete transmission failure, a much more costly repair.