We trade in our 2006 XC90 to take advantage of a great offer on the new 2007 when it came out. Big mistake. We really liked our 2006 and only had minor issues with it. It drove well and was a good performer. Our 2007 has been a disaster. It has had a horrible ride since day one. It has been in the shop for almost 7 weeks in the first 18 months we have owned it. Both front axle shafts have been replaced, power steering issues along with numerous minor items. Even now, the car jolts over any bump and rides so loudly it is hard to talk in the car. At least it looks nice and we only have a two year lease. Volvo has tried to fix it, and the dealerships have been pleasant, but we give up.
Even after five years, it is still the best looking SUV on the road. Interior materials hold up very well even with two kids in carseats.
Shameful ride and overall reliability. The whole chassis feels like it is going to crash down to the road at times.