It's absolutely fine as a towcar.
I've had my S60 for about 5 years now, a 2.0T Auto and have done thousands of miles with 1500kg of Van on the back with no problems whatsoever.
Mine is no longer standard, but even as a standard car it had no problems at all.
Will happily sit at 60 on the motorway, torque converter locked up cruising at 2300RPM.
Mines has the sport chassis pack so has stiffer springs as standard which helped with stability, but I can't see a standard one being much different.
Will do about 24/26MPG on a flat road at a cruise, soon drops when some hills are brought into the equation though!
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