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I just bought a 97 V70 AWD with 65000 miles on it. First journey
in it I had a major transmission failure. I notice I'm trailing
smoke, and as I pull over get a whine then a clunk in the
transmission. I pull over, and open the bonnet to see a small
fire low down at the back of the engine, which I extinguish.
It appears to be caused by oil burning on the exhaust.
The garage reports that the transfer box has lost all its oil,
and seriously overheated resulting in bad damage, and a very
large bill for a replacement. Is this a known problem with AWD
cars, or have I just been unlucky?
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