Hi Harry,

There are 3 problems that I am aware of on Volvo Transmission (1998 to 2000 70 series).

Problem #1 is the transmission fluid. Volvo has stated to me (I had a "Long" talk with two factor reps and an actual Engineer from Sweden) and in a service bulletin (http://www.nhtsa.dot.gov/, look under problem & Issues) that the transmission fluid can be burned (i.e. worn out, no longer has the quality of a hydraulic fluid). When this occurs your toque converter lock up no longer works as designed. This is best notice when you are driving between speeds of 50mph and 80mph (in my case 55mph is the best speed to notice the problem). You will notice a shutter every time you put your foot on the gas. It is like running over a row of small rocks. This problem can be fixed easily by flushing the transmission fluid. Volvo told me that there is no long-term damage done to the Transmission if any damage was done at all. I personally have a tough time believe that there is no damage done.

To keep this problem under control or to prevent it all together keep the transmission fluid as clean as possible by doing a regular drain/flush around every 10K miles to 15K miles.

The Second problem is of a poor design and can not be fixed. This problem is as follows: just when you are about to shift into 4th gear you let your foot off of the gas pedal and WHAM! It seems the transmission fluid accumulator cannot react quick enough if the throttle is released just before a shift is to occur, and the whole drive train shudders and bangs with the harsh shift. This is a design problem and can not be fixed unless you get a whole new transmission. Preferably not of the same design that is currently in the old 70 series car (i.e. a replacement transmission will not fix this problem).

And the third problem is a rough shift between 3rd and 4th gear when the transmission is Hot (you have to be driving awhile to notice this problem). Volvo (i.e. the Volvo Engineer and the 2 Factory Reps) believe that the torque converter does not unlock at the correct time when shifting between 3rd and 4th gear thus causing the "Cluck" (it unlocks a little to late). This is a toque converter lock up issue and can be related to problem #1. This is why your Dealers are into transmission fluid flushing.

The dealer, Volvo factory Reps and the Volvo Engineer took my car apart trying to figure out the problems 2 and 3. They check all electrical systems, flush the transmission 4 different times and went as far as to install a new valve body (this unit control the shifting). The final results were no change. The dealer technician and myself went and drove several XC of different years and found that all 1998, 1999 and some 2000 had problem 2 & 3. Some 2000 XC don’t have this problem due to a 5-speed transmission (A different design).

In your case I would have to agree with the Dealer. If you are parking the car on a hill put the parking brake on first before you put your transmission into park. Letting the weight of the car sit on the transmission will not hurt the transmission but can make it very difficult to get it out of park and into a reverse or drive. You may have to have your parking brake adjusted. Some Volvo owners have stated that their parking brakes do not work and needed to be adjusted.

Oh, I almost forgot! The stick shifter in my 99 XC is a cheap piece of plastic. You could be experiencing a problem with this cheep plastic assembly. My shifter broke on me. Left me sitting in a Mall parking lot. Took me ½ hour to identify and correct the problem. I had to take the center console apart a disassembly the shifter to get the broken plastic cleared so I could move the shifter in to the proper gears. More of that GREAT Volvo quality!

One other note I would like to mention. I nailed Volvo to the floor by asking: "If these problems (the top 3) do not cause any long term damage and will not lead to a $3,000 (yep you got it!) Transmission replacement for the next 100k miles then I would like Volvo to extended just the transmission warranty beyond 4/50,000". The answer I got was to sell me the extended warranty package at 1/2 price. I walked away from the offer. I felt their response was insulting.

My feelings are that the drive train can not last long being slammed around. Something somewhere is going to give out and I will be stuck with the bill! I had high hopes when I bought my Volvo thinking I had bought a car of high quality and longevity. What I got was a poor combination of drive train technology and a lot of worry as to if/when it will all fall apart. I do not like driving around thinking something is going to die at any moment. My 99 XC has left me stranded on 3 different occasions. Therefore, I do not recommend the purchase of any 70 series Volvo from 1998 to 2000. You could be setting yourself up for a big repair bill.

Good Luck and Best Wishes,

Steven---