2024 Volvo XC60 Engine Problems

In April 2025, the engine on our 2024 Volvo XC60 B5 Plus AWD failed suddenly with only 7,000 miles on the vehicle. The vehicle is leased and under full factory warranty. Volvo’s dealership confirmed the engine requires a full OEM replacement. However, our insurer, State Farm, is refusing to authorize a new OEM engine and is instead forcing the installation of a salvaged engine from a wrecked vehicle. This creates significant safety risks: • The salvaged engine’s crash history and internal integrity are unknown and cannot be verified. • It bypasses Volvo’s safety testing and voids the factory warranty, removing manufacturer oversight for future issues. • The use of non-OEM parts violates the lease and risks improper compatibility or undetected damage, affecting vehicle safety and reliability. The original dealership admitted they never performed a full internal inspection of the failed engine, relying only on spark plug checks and a borescope scan. State Farm denied coverage for a $1,299 tear-down at another Volvo dealer that would have confirmed the root cause. Instead, State Farm arranged a “second opinion” at the same original dealership without notifying us and presented this repeat review as independent confirmation. We have now been without a safe, functioning vehicle for over 80 days. State Farm’s insistence on using salvaged parts instead of OEM components not only violates our lease terms but undermines manufacturer safety standards and exposes us, and potentially other consumers, to heightened safety risks if this practice is systemic. No warning lamps appeared prior to the engine failure. This refusal to restore the vehicle to OEM condition represents a serious safety concern that should be reviewed.