One problem related to driveshaft has been reported for the 2002 Volvo XC70. The most recently reported issues are listed below.
I own a 2002 Volvo Xc70 cross country. While driving, and especially during down shifts, the vehicle would lose its connection to the drive shaft, causing the engine to rev up and the vehicle to jerk as it grabbed back into gear. The jerking has consequently caused me to break my motor mounts. A local mechanic diagnosed that the vehicle needed a new transmission. The dealer agreed that this was the only solution. All software updates have been done. The manufacturer has not been contacted, as they are a chinese company. The vehicle has not been repaired. The failure mileage was around 85,000. The current mileage is 125,000. The VIN was not available. Catastrophic failure. Not fair to the owner. Manufacturer should correct this common, expensive problem.