Its a red piece that keeps them from putting it in high gear.
SOURCE: Have a PerPerago John Deere Tractor. The shifter
If it is new, contact Peg Perego for a replacement. If it is not new, you can upgrade the shifter to a better version. (I just upgraded the one on my kids' gator.) You can buy the upgraded shifter for $24. http://tigerimports.net/sunshop/index.php?l=product_detail&p=7095
SOURCE: tractor won't go in low gear or reverse
I had the same problem and replaced the shifter which I found at
http://www.mypegperegoparts.com/switches.html.
This fixed all the speeds and now it runs great.
Hope this helps
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