Does a speed sensor control shifting?
Without a valid speed signal from these sensors, the PCM will not be able to correctly control the shifting of gears within the transmission. This may cause the transmission to shift roughly or more quickly than normal. ... An automatic transmission is hydraulically controlled and designed to shift smoothly.
Can a sensor cause transmission problems?
The Vehicle Speed Sensor measures a vehicle's speed. If it malfunctions or fails to work, then the automatic transmission may not operate as it should. This sensor may also cause the automatic transmission to go into failsafe mode – giving the appearance that the issue is more severe than it really is.