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Wife's car was due for oil change and just before taking it to Volvo the oil light came on. Checked oil and it was a bit low. Took for service and told oil mixing with coolant. Told it was oil filter housing failure although to me it sounds more like a head gasket. Told needed to change out oil filter housing, thermostat, all hoses (radiator and engine oil) etc.
No noticeable change in performance and had regular warranty service (oil chng, etc) 5 months ago and no issues reported at that time.
The car has less than 16k miles on it and this just doesn't seem right. And to top it off they want to say this doesn't fall under warranty coverage.
My car has 15650 miles.
My car has an automatic transmission.
I personally have not worked on the oil filter housing for a XC60 so I can not confirm the oil filter housing has coolant running through it. I looked up the part though and indeed there looks to be a coolant reservoir that is part of the oil filter housing. If your unsure, simply ask the service writer to show you the part and explain the failure. If they refuse to do this, you should go to another shop. This is good customer service.
If this is accurate, and it appears to be, what happens when you get oil in the coolant is the oil attacks all the rubber hoses. Coolant hoses break down quickly from oil, which you have running through your entire cooling system. You are correct, head gasket failure can lead to this as well, but there are other possibilities as well. On your Volvo, this is one.
As for warranty, I can't speak to that. I would certainly be upset as well to have this problem on such a new vehicle.
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