Hey MadeInAmerica, this is MadeInJapan (long story on the name).
Mine is a little different than yours but it is a vacuum hose. I would suspect that it is part of the pcv (positive crankcase ventilation) system and is needed to re-introduce the unburnt fuel's fumes into the engine via this tube. Get it replaced. This little deal will decrease your boost as well as cause pollution and could even lead to pressure in the engine which is not good for the seals. Ask your independent mechanic if he'll clean or change out your pcv hoses and oil trap. I know he'll cringe because it's a nasty job and takes several hours, but you should do this by 100K miles anyway for the health of your seals and your turbo. www.fcpgroton.com sells a kit for your pcv system. They also have diagrams of that system for your car so you could check it out and see exactly which hose it is and if it is indeed part of this system. Anyway, any hose with a hole in it is going to have adverse effects to your car, with most noticable at first is dropping mpg.
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1998 S70 T5 Emarald Green Metallic, 2004 V70 2.5T Ruby Red, Previous Owner of Black '94 850 Turbo Wagon. My cars have been running so well lately they've got me worried.
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