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I went to shop for specifically a V70 T5 manual trans, 04 model (which btw are not available in the US except special order!!) so I got a V70 2.5T.
I test drove an S60 T5 Geartronic and was not overly impressed with any additional power compared to the 2.5T that I got with a Geartronic trans & sport package. The T5 has noticable turbo lag compared to the 2.5T which has all that SAME torque as the T5 at 1500 rpm, not 2500 rpm. This attribute of the 2.5T makes it a much more drivable smooth engine compared to the T5 and is a better lower rpm engine for everyday driving, which adds to a more pleasent driving experience imo. For sporty driving, I can't note any noticeable difference in the 0.8 sec 0-60 time, so I would get the 2.5T loaded with premimum pkg and sport pkg, spoiler, fog lamps etc instead of going for the T5. The 2.5T btw gets excellent mileage compared to the T5 which I had opportunity to take one for a few days as a loaner.
In reference to the comment below concerning the S40T5, the engine is a slightly modified 2.5T, and bears no resemblance to the T5 motor. I found the S40 quick and handles well, but the solidity and build quality was not anywhere as good as the S60/V70, and not substantially any quicker than the S60 either, even with the 6-speed manual compared to the 2.5T Geartronic. I thought it was kind of 'tinny' and cheaply made. It was an easy decision to go with the V70 or S60 for a few $K more.
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'89 245 Sportwagon, '04 V70 2.5T Sportwagon
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