My 2000 S70 is lowered with TME springs and I'm running 215/45-17 tires on 17x8" Pegasus wheels with 5mm spacers. The setup has worked quite well for the past 3 years. The only situation where I encounter some rubbing is when the car is loaded with 4 passengers and a full trunk AND I hit a big dip on the highway. In this case I get a rub on the outside of the rear wheel against the fender lip. In practice it might occur once every few hundred miles.

I've had it on my list to address this - obvious its not real bad since its been going on for a few years.

I have done fender rolling on my 240 and with the right tool its not a big deal at all. However, the S70 has that black plastic fender liner covering the lip. I was thinking of first trimming that entire liner back from the fender lip. That will probably give me another 1mm of clearance, which may be enough.

Here's my question. Is it ok to cut that liner back from the fender lip? It should be easy enough to do, but I just want to make sure I don't create more problems. For example, I don't want it to start sagging (or something) over time. Thought I'd post here. I haven't really got a good look at it yet.

Thanks,
Ted

Your tires are too big for the hole... I would NOT trim the plastic. First, the plastic is saving your paint from gravel and being rubbed off by the tire. If you remove it, you will develop rust.
Have you tried smaller or no spacers at all?

Klaus