I did all the research I could do on the topic of Volvo V70 transmission drain and fill and made the decision to go with the Toyota Type IV ATF going with the simplified drain and fill method. We have a local dealership here in town with plenty of the fluid readily available and since there is not too much money coming into the pockets to our friends from Toyota I thought that would give them my business; the parts guy was actually surprised that I was not inquiring about another recall item.
My father in law helped me in the process and it surely made things easier.
I bought 14 qts of ATF for $75 and a long neck funnel for $2.99 from Auto Zone (make sure you get one with a very small opening).
In addition I already had a 10 qt oil drain pan (the image was taken after I drained the transmission the first time, it was clean and this is indeed the old ATF in the pan, not oil).
Tools required were a 9mm (for removing the lower plastic cover) and a 15/16 inch (for the transmission plug) socket wrench.
… See 2001 V70 2.4T ATF simple Drain and Fill… for the entire procedure …
In conclusion, the drain and fill method was very easy and straight forward. I am very satisfied with the results and after returning 3 qts back to the dealership the whole process cost me $63. As mentioned before, the original fluid was by no means burnt or in any way in bad shape, but certainly discolored. Now that I have done the ATF replacement, I will keep a good eye on the fluid level and looking for any leaks in the future. The shifting of the gears is very smooth (did not have any issues prior) and I will do this again in about 50,000 miles.