Transmission Noise problems of the 2005 Volvo XC90

In December of 2016, at approximately 95000 mileage, the "service transmission urgent" message and light came on and the car stopped functioning and making loud clanging and rattling noises. The car was taken back to "infinity of memphis" dealership where it was purchased with an extended warranty. The dealership asked us to contact "Volvo cars of north America" for defective transmission, which we did, but Volvo refused to honor our claim stating the car was too old, even though it was under the 100000 mile warranty. The car was taken to "Volvo of memphis" dealership, which contacted Volvo manufacturer and infinity of memphis dealership, and informed us that the extended warranty would pay $5000 maximum towards a new transmission, cost of which was 8000$, and we would have to pay the rest out-of-pocket, about 3000$. The other option was to put a refurbished transmission at aamco for 3000$, cost of which would be covered by the extended warranty. We elected the latter, since there was no out-of-pocket cost. At this time, we were told the "check engine" light and other messages would be gone, once the car was fixed. However, the "check engine" light continues to remain on. Additional complaints were filed, but aamco, Volvo of memphis and infinity of memphis claim it is unrelated to the transmission problem. A letter was sent to Volvo cars of north America llc, attached below, but Volvo refused to look into our problem saying the car was too old. I spoke with a Volvo rep over the phone with no resolution. We would like for Volvo to install a new transmission in our vehicle, as numerous forums and online sites have people complaining about defective Volvo transmissions in these earlier models.

My car was at traffic light, on green light, I tried to accelerate , I heard a big noise from somewhere in engine area. After that noise, a light come on with a message " transmission service urgent". The car has real hard time to accelerate. Even at 4000 rpm, it did not accelerate. Browse on internet for 3 hours and finally come to know that this particular model has transmission problem.

This vehicle was purchased outright as a new vehicle in February 2005. This 2005 Xc90, fwd with approximately 13,880 miles had a complete transmission failure on 03/21/2007. Day prior to the event, an odd noise was heard on driver's side of vehicle. Upon acceleration vehicle would hesitate then lunge forward. Service department called upon arrival at home. The following morning, on way to dealership/service, 2 blocks from there vehicle lost power and would no longer accelerate. Was notified that a new transmission was needed. Currently am awaiting new transmission. As per service this was under warranty. Service dept and Volvo na, stated that the new transmission will only be covered for the remainder of the new car warranty period which would be approximately 2 years.