During my latest oil change I noticed some oil on the underside of the turbo. I have an appointment at the "local" dealer late in the week, however, has anyone had a similar experience? Does the leaking oil mean the turbo has to be replaced? Is there a gasket that can be replaced instead? Anyone know the potential cost of a turbo replacement?

kip

This is a verrry common problem, and the fix is a $2 seal (and a little grunt work) for the top of the oil return line. Oil also oozes from the shaft seals, so you have a little oil in the duct running from the turbo to the intercooler, and some carbonized oil inside the exhaust line as well - this is normal so don't let a mechanic tell you to replace the turbo.

The first sign of a failing turbo is oily smoke under hard throttle, caused by oil escaping the rear shaft oil seal and getting burned up in the exhaust system. Turbo failure is rare in the FWD Volvos, but make sure you do regular oil changes. Switch to synthetic for better flow characteristics in the turbo.
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David \\ (98 S70 T5SE Black, misc mods (mostly lighting), red calipers) (92 940GLE)

This is a good question. Mine was leaking a bit a few weeks back. Just some drips here and there. While in for servicing I had them check it and said it was the turbo and normal. I noticed in the drive a few days ago a puddle about the size of an 8" pizza. Today in the garage a 12" pizza. I'll need to take it back. Any comments? 99V70 GLT.

I have a 98R and it also has what I call "oil dampness" meaning a drip falls
about once a week or so! Was told this is normal! If its causing a half dollar drip every time you park, then you may have a line leak and should have it looked at. I have actually looked under mine and its not line leakage. With good maintainence you should get lot of miles out of your turbo!