Faults:

Aside from normal maintenance, the following items have had to be replaced:

Rear differential temp sensor (AWD failure).

Steering angle sensor (anti-skid failure).

Ignition cylinder (key wouldn't turn - required tow).

Most light bulbs changed annually (there's always one out).

General Comments:

It's the most comfortable car we've ever had; the seats are unbelievably comfortable (front and back). It's sure-footed with plenty of turbocharged punch and gets decent gas mileage for its size and weight (~25 MPG).

We've serviced it by the book (every 7,500 miles) and have had minimal issues. It's not as carefree as a Honda or Toyota, but excellent by European car standards. We plan to retire it shortly, but will keep around as a second car - it still runs and drives beautifully. The exterior and interior have also held up really well (save for the peeling cloth A-pillars - easy fix though).

Great car, but stay on top of maintenance and repairs. Also, use a local independent Volvo garage - you'll save considerably.