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I can tell you my experience of such a smell as I posted on this site and here earlier http://www.volvoclub.org.uk/forum_main.htm
Copied from the site:
"'98 V70 AWD Main harness burn"
Volvo for life, perhaps not.
With 105k kms (no extended warrany plan) I didn't expect the main hareness from the fuse pannel to the dashboard and a secondary harness requiring replacement ($1600CDN and $800CDN, labour $1100CDN plus parts unknown yet). However, for some reason a wires(s) in the cable overheated, melted the insulation and fused the other wires in the cable together at various spots. My first reaction was, "why did the fuse not protect the circuit?". My house wiring doesn't burn before the fuse blows. As a past hardware design engineer, in my opinion, this is a design fault and it should never have happened. The current rating of the wire was exceeded before the rating of the fuse. The job of the fuse is to protect the circuit. For this, I blame Volvo.
The dealer has made no attempt to contact Volvo and has left it up to me to do so. However, they have discounted the price on parts but that's all they are willing to do. It's not the dealers fault, it's a Volvo responsibility. Other than checking their database for a recall, Volvo Canada was not helpfull and I'm getting absolutely no resolution from them. I feel abandoned in the cold and extremely dissapointed.
I've found a few V70 owners with similar problems. One owner had the harness go up in flames. I was lucky, it only melted the harness wires. No driving incident. I had stopped at out street corner and shut the car off to retrieve the mail. When restarting, the engine would just turn over, cranking, but would not start. After locking the car with the remote, it could not be opened again using the remote or the key.
Any suggestions on a plan of action?
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