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Unfortunately for you Brickboard traffic (readership) is way down these days. There never were very many S40 posters. I have seen a few knowledgeable S40 guys but not recently.
Racks don't groan. Power steering pumps groan when turning if worn. They can also groan if the PS fluid level is low. As is your case. Not enough fluid to lubricate the pump. $2000 for a new rack is a ripoff. Your mechanic needs to make his boat payment!
Again, don't condemn the rack. The rack might be perfectly fine. It could be something else. If you are willing to jump in and do some cleaning and research, you stand to save yourself some serious coin. You might find it's a leaky hose or reservoir tank. Perhaps a bad pump or leaky rack seals which can sometimes be rejuvenated by flushing the PS system and refilling with the correct synthetic fluid.
Look, I'll be the first to admit I'm not a mechanic..:)
I don't have experience with S40's but I do know something about Volvo racks. I replaced the rack on my 240 and I stopped the rack on my 850 from leaking by changing the fluid to Mobil 1 Synthetic PS fluid. Doing the work to locate your problem is obviously up to you but you could save yourself significant green....
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Will I buy another Volvo??? We'll see....
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