Hi-
My 2006 S 60 turbo with 77,000 miles has just started to emit smoke / fluid from the exhaust when I cold start(after more than 12 hrs). This morning, I noticed it emitted white smoke for about 20 seconds and then after warming up for 3 minutes, fluid, appeared to be water, was on the ground. Air temp was @35degrees.

What is the cause of this? Fixes?

Thanks.

 

Sounds like you are driving a lot of short trips, then there will be some build up of water in the exhaust.
Try driving a long trip with some high rpm (4-5) to get the exhaust nice and hot, it should burn off most of the water then.
If it's still emitting a lot of white smoke, it could be your head gasket that's leaking, but then you would have to top off the cooler all the time, so my best guess is condensation in the exhaust as I said first.