Two problems related to differential unit have been reported for the 2001 Volvo V70. The most recently reported issues are listed below. Please also check out the statistics and reliability analysis of the 2001 Volvo V70 based on all problems reported for the 2001 V70.
Noticed a rhythmic rubbing type noise while driving and increases its tempo as speed increases. I took it to Volvo of cerritos to investigate noise and was told that the angle gear assembly that propels the right and rear wheels is faulty so, I took it to an independent auto repair shop that specializes in Volvo cars for a second opinion and I was told the same thing. I had the angle gear assembly replaced by the independent shop at a cost of $2,565 and I was told that the gear assembly was bone dry and rusty inside and the bearings were broken. The car has 114,600 miles on it and it gets the recommended service maintenance every 7,500 miles. There was never any occasion where an oil leak was noticed so I am assuming that this was a manufacturing defect. I wonder how many Volvo cars of this model have this type of problem with the power train.
In Dec 2005, my Volvo was serviced at the dealership. Vehicle had 48,300 mi. Dealership noted that front and rear suspension needed to be replaced. Vehicle has never been driven off road. It is primarily a short distance commuter car. At time, could not afford repairs. Waited one year (Feb 2007 - 54,000mi) and took vehicle to independent repair shop where they verified that the front low control arm bushings were broken off, rear sway bar link was broken, all parts needed to be replaced. At the same time, repair shop noticed that the rear differential had failed. Oil was leaking into the exhaust and car was deemed to be inoperable at any moment. Upon call to Volvo to purchase part, it was learned that the dealership was aware of the issue w/ faulty rear differential. Dealership was out of stock on the part due to the number of differentials that needed replacing. My part was special ordered. Auto repair shop informed me that it was highly unlikely for a rear differential to fail on a vehicle w/ such low mileage. In addition, I went back through previous service records and found that Volvo had patched a leak in the differential just prior to warranty expiring. In total, the repairs for the suspension and differential cost $4,600 and I was w/o a vehicle for 4 days.