I have an S60 that just went out of warranty. In the last 5,000 miles I started using a quart of oil every 500 miles. No leaks, runs fine. Volvo doesn't want to hear about it.
I have a 740 with 700,000 and it doesn't use a drop.
Anyone have any ideas?
Thanks

Don't jump on the "blame the turbo" bandwagon. Turbos will leak huge quantities of oil if forced. Check all of the crankcase venting system for built up crud. The blowby pressure in the crankcase will hold the draining oil up in the turbo and force it past the steel rings in the turbo that are loosely called seals. A turbo will NOT hold oil under any pressure under any circumstance. The balance between oil making it back to the crankcase and oil leaking out either of the seals is a very fine one. If the turbine or compressor blades do not contact any surface of the housings, chances are the turbo is fine.

I've heard that the white-block engines will never have the longevity of the red-blocks -- different design parameters. But that said, let's consider what you have:

A sudden increase in oil consumption (re "...In the last 5,000 miles....")points to some failure, not merely a matter of gradual wear. And 1 qt/500 mi is a lot! If you can't find a leak anywhere, I'd bet that your turbo is toast! They're notorious for failing, and sucking oil in the process -- have you always used synthetic oil, and let it cool down before shutting it off? Turbo's need TLC, much more so than a N.A. engine.

But this blaming the turbo is merely a guess.

Why not just go to a dealer (a different one, unless you left on good terms with your regular dealer) and just say that you've experienced a sudden increase in oil consumption and you want them to diagnose the problem. Don't talk about warranty or anything about blame. Act innocent! See what they say.

How many quarts of oil have you burned?

I would take it to another dealer for an oil change and innocently ask them if they can find out why it is burning so much oil. Don't cop an attitude, just ask them to help you. If you cannot do that, have a disinterested friend do it.

Why fight until you know what the story is?

Once you know why the oil is disappearing, then fight.

For instance, if they tell you that it looks like lack of proper maintenance, and you have done all your services, then you have a great case against your dealer who did the work. In this case, Volvo will have your back.
--
'96 855R,'64 PV544 driver, '67 P1800 basket case, '95 855, '95 854, the first three are mine, heh, heh, 435,000 miles put on 9 bricks

That is excessive! Ask to talk to a Volvo representative via the dealership.

Klaus
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The 164 has a new home, all I am left with are 2 turbos :)