Pretty sure it's the CEM, local auto-electrician diagnosed problem back to the CEM. Same thing happened a couple of years ago, no dipped headlights and volvo quoted €500+ for the part. Eventually got one in a breakers yard although it was on an S40 as not so many V40s sold over here. Although Volvo parts claimed that it was an unusual fault when I rang around beakers yard lots of the CEMs were missing! Part no. I have is 30621305 which is the one from the S40, unfortunately I dumped the original. By the way, great forum.
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