I have a 2002 S60 AWD. I pulled the drivers side front axle shaft and the gears it fits into were completely bone dry (a cloud of rust dust came out when I pulled the axle). How does this get fluid? It looks like it is part of the transmission, not the angle gear. The transmission fluid level was good. The angle gear was a little low, but not much.

 

were you expecting fluid to drain out when you pull the axle off? there's a seal around the shaft that sounds like its doing its job.

 

There was no fluid anywhere in the cavity inside the transmission/differential.

 

That's how it's supposed to be.

 

I don't have it open now, but I was sure there are gears in there. Do they run with no lube?

 

Yeah, they are lubed with the angle gear fluid. The axle is not. It just passes through and is driven by the transmission.