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Very interesting information Klaus.
It sounds like from your estimation my BG if f***ed beyond recourse now. I kind of wish I didn't need it at all anymore and I could tear it apart and see what the hell is going on in there.
I was recently reading a thread on xc70.com where someone had recently (this spring) done a conversion and completely removed their bevel gear and installed the regular FWD pass side drive shaft. In his case he HAD to because the BG had blown a big hole in the side.
Here's the thread:
http://www.volvoxc.com/forums/showthread.php?t=13260&highlight=bevel+gear&page=3
If I can get a hold of this guy and find out his secret I will post details of the conversion on this forum.
Any sense taking the BG to a driveline or transmission place to have them try to rebuild the thing?
I don't know if they could source the gear and/or seals and/or bearings to refurbish the thing or not. Also I don't know if it would be cheaper to do this than what they want for one from Erie Volvo ($800+shipping)(at least they give a lifetime warranty). If I thought the parts prices from Volvo would be reasonable I would think about rebuilding it myself, but you know where I'm going with this...
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1998 V70 AWD Turbo 190k+
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