One problem related to transmission not engage has been reported for the 2003 Volvo XC90. The most recently reported issues are listed below. Please also check out the statistics and reliability analysis of the 2003 Volvo XC90 based on all problems reported for the 2003 XC90.
Transmission failed without warning. Here's the story, my Xc90 was dealer serviced a week ago (pm), took on a short road trip over weekend, fortunately made it home before it broke down. Went to work upon returning from trip and while I was parking the transmission failed to engage in any gear. Very unsafe! no warning lights illuminated and there was no 'limp mode. ' the rpms rose as if it were in neutral. Could hear a metallic rattling noise coming from transmission. Had to have it towed from work to aamco. Aamco stated the damage was inside of transmission and they would need to remove and tear down to see what issue is, but more than likely it was a complete failure. I just bought this car in November and luckily bought an aftermarket warranty that 'should' cover everything. Issue is the warranty company will more than likely just replace it with a used trans that will fail in a short time and I will have to go through this again. This is a major design flaw on the part of Volvo and they should own up to it. The engine produces too much power and the vehicle is too heavy for the transmission to take it. This is a t6 btw, with the 6 cylinder and twin turbo. Volvo should have a recall on this transmission. I have scoured the web and see this is an ongoing frequent issue with the Xc90 and Volvo is losing what were once loyal customers. Search this issue on the web and you'll wonder if there are any Xc90's that do not have transmission problems.