I have a 2003 XC70. I noticed a puddle on the garage floor the other night and took it to the shop. He told me that the leak is oil AND coolant mixed together. The engine runs fine, but this is obviously very disturbing.

He mentioned there is some sort of 'box' in the rear end of the volvo where coolant is used to cool oil?? Could this be a turbo issue? Blown head gasket? If it is a blown head gasket, why does the car seem to run fine??

Any advice would be GREATLY appreciated.

Thanks