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Yup, as I understand it, proper periodic inspection by somebody who knows Volvo AWD systems should have caught the impending doom. The transfer case that transfers power from the normal transmission to the rear-wheel drive starts to leak. This starves the spline gear which eventually strips. It's one of those things that happens at 100K+ like the timing belts. My local Volvo speciality shop charges $500 to fix it BEFORE the Hindenberg touches down. Jiffy Lube is clueless.
 
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