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I think it's a typical leak spot. My 740 leaked coolant, not oil when HG failed.
When I pondered HG replacement the mechanics said keep driving until it leaks too much. The risk is that it the major coolant leak happens while you're driving and you don't notice car is overheating and the head and/or block warps, engine gets blown. However, many a Volvo engine has overheated and keeps ticking....
If you replace HG yourself, it's enough work that you might as well have it machined flat. However, again many HGs have been replaced without machining and the owners are content....
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Try the easy to search Expanded Style FAQ Index **here** I own a Volvo or Does Volvo Own Me?
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