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There are two types of AWD. One uses visco disc and other uses Haldex clutch. The visco version is mostly unusable as it can take 10-20 seconds of spinning the fronts before the visco clutch heats up enough to start transfering the torque. Haldex works quite well but these cars are esentially FWD 99.9% of time. It's not ful time 4WD.
01-03' models probably have Haldex. Engines should be OK. My girfriends V70 engine just seized few days ago. Car is 8 years old, with 80k miles on odo. All service done at the shop. Bugger.
They should keep together quite well but they are not in the same league as old stuff (740, 940, 240). And they are FWD. So if 4WD is important, Subaru has superior technology. Outback should be nice with 6-cyl engine. I believe it might have worse fuel economy and somewhat more plastic (=japanese) interior. Passive safety is probably better for Volvo too.
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Thank you for your time,
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