Our '98 XC with AWD had had the air pump replaced, and otherwise has been completely free of issues, only scheduled maintenance and brake pads. Actually, there was one other item: by 40k, it was going in and out of converter lock-up very harshly, particularly noticeable in mountain driving in teh 50 or so MPH range, up and dopwn hills. Local dealer response twice was its normal. Finally, before the warranty expired, I took it to a much more respected dealer a little farther away, who said nothing to it, just needs a flush. I really didn't believe them, but tried anyway, and it completely cured it, for free since they covered the flush under warranty too. The car gets very mixed use, from 3 mile commutes to skiing in Maine and NH, Boston city driving, shuttling kids, etc. So far its right up to snuff compared to the rest of our older Volvo's at the same point. I really believe that a lot of Volvo "problems" are directly tied to poor dealer service / knowledge, so find yourself a really well thought of mechanic and keep maintenance current for a great Volvo experience.
Mike
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Mike Sullivan ('91 745 (171k), '93 965 (147k), '95 855T (60k), '98 V70XC (78k). Past Volvo's: '85 744 (256k), '86 245 (165k), '86 245 (195k), '88 745 (208k).