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oil in coolant exp tank 700 1989

Hi Everyone,

looking for some advice and help with my 1989 740 GLE 16 valve non turbo wagon. I haven't owned this car for that long, but have had other similar volvo's for years and haven't seen this happen before. Noticed yesterday that there is oil/sludge in the coolant exp tank, not that much oil, but I know it doesn't belong there. Thought it might be transmission fluid from the trans cooler, but it's not. Car doesn't have an oil cooler. I thought about a head gasket, but I have not seen a blown head gasket do this before. When the head gasket went on my 760 I had water in the oil but not the other way around. Could a bad head gasket cause this ? There is no evidence of water getting in the oil. I don't know where else to look. Car is running well and isn't loosing oil. Any advise would be appreciated.

Thanks,
Mark






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