rep, wyatt, who offered to pay for the parts (~$3,500) but I would have to pay for the labor(~$1,500). The service rep said that she would talk to the factory rep regarding compensation. I towed the car in it was diagnosed w/ internal transmission problem.
Within afew days, the car was parked at my home, and was unable to engage in forward or reverse. In December 2010 at ~107,000K miles, the transmission started to hesitate & function erratically while driving. I was very pleased with the service and went on my way. Carlsen Volvo (palo alto, ca) agreed to cover the cost of the transmission replacement. At approximately 52K miles, the XC90 1st generation transmission went bad and had to be replaced.