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Transmission Failure C70 97AWD

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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