Hi Ray,
I was told by the Factory Rep/Dealer that the Factory used fluid that was defective. However, I have read on this Bulletin Board and others where owners are changing Transmission Fluid as often as their Engine Oil (around 10K). I have also talked to a local Volvo Mechanic and he said that this is normal for 70 series automatic transmissions.
My issue is what is causing the Fluid to go bad? There is nothing in a transmission that can contaminate the fluid like there is in an Engine. The only other idea that I came up with is Heat. Therefore, I install an after market transmission oil cooler. Also note that the transmission oil cooler in the V70 XC is part of the engine radiator. I install my after market oil cooler in series the oil cooler that was already in the car.
I would recommend that if you do some towing to install one. Mine fit just fine in the lower drive side of the radiator (in the front of the radiator). If you like I can e-mail you a photo of the installation (I have no way of posting it to a web URL).
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