Ive towed in my S40, and it was ok, however it wasn't a massive weight, and if I had a V40 it could have gone in the back. I don't think a caravan would be much fun for a long drive.
I towed a BMW 330, a short distance to the dealers, and it was struggling a little on hill starts!
I think the main reason Volvo's had a good towing reputation because they were mainly rear wheel drive cars, which explains why some people are now put off towing with them, being fwd.
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