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I'm surprised a progressive state like California doesn't have a more potent lemon law. What you've put up with is ridiculous, and I'm surprised the dealer didn't find a way to make amends. Why would he want to send your next $40K to BMW, Audi or Acura? (Actually, I'd stay away from Audi, too, if I were you.) If you're ever out east, I'll hook you up with my indy tech (Volvo certified, IPD licensed). He won't work for free, but he'll work for a lot less...and get it right the first time.
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(98 S70 T5SE misc mods, mostly lighting) (92 940GLE)
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