The Volvo 240’s U.S. Journey – Chapter Five

Pat yourselves on the back, patient readers. You’ve come along for this multi-chapter ride during which we’ve covered the first nine model years of the Volvo 240’s U.S. story (already longer than a typical automotive lifecycle), along with the always-evolving nameplates with which it competed (rather successfully, to that point, you must admit). For those of you just catching up, here are  Chapter One, Chapter Two, Chapter Three, and Chapter Four.

By this time, much of Volvo’s corporate attention was focused elsewhere. The new priorities included expanding the 700-series lineup and even taking another swing at the personal-coupe market segment with the 780 (to say nothing of shepherding the engineering and development of the smaller, Dutch-built 440/460 series of compact cars, which never made their way to North America). However, that’s not to say that all was quiet on the 240 front…

Model Year 1985

Four-cylinder DL and GL models get a new, low-friction B230F engine, which improves fuel efficiency. Manual transmission cars also receive a shift indicator lamp which advises the driver when to up-shift for maximum fuel economy.

Heated driver’s seats become standard equipment on DL models in Canada, and on all GLs and Turbos for North America.

Diesels are now available in DL trim level only, and two-doors (including the Turbo) are dropped. During early calendar year 1985, the remaining four-door sedan and station wagon Turbo models are phased out in favor of the new 740 Turbos.

BMW adds a four-door sedan to its 318i series. Nissan introduces an all-new 810/Maxima sedan, and Toyota responds with its newly-designed Cressida sedan.

Hard to tell, but the Maxima is in the upper left, with the Cressida in the lower right. Twins from different mothers? (Maxima: http://carsand bids.com; Cressida: www.bringatrailer.com)

 

Ford Motor Company announces the U.S. introduction of its “Merkur” nameplate, with which it hopes to gain a share of the increasingly lucrative upscale European sports sedan market in the U.S. Its first product is a Federalized version of the European Ford Sierra XR4, which is called the “XR4Ti” in the U.S.

Like some other FoMoCo captive imports, the Merkur’s lifespan would be short and not particularly sweet. (Source: https://fordheritagevault.com)

 

The Yugo is introduced as the lowest-priced new car in the U.S., with a base MSRP of $3,990. The minicompact three-door hatchback is based on a 15-year-old Fiat design still being produced in Yugoslavia at that point.

Malcom Bricklin’s Yugo, at $3,990 in 1986, would cost $11,438 now. (personal collection)

 

Domestic nameplate new car sales continue upward to a total of 8,204,721 units in 1985, up another 3% from 1984’s tally. Imports register an increase of 16%, to a total of 2,841,063 units.

For calendar year 1985, Volvo sells a record 104,252 units in the U.S., and due to the introduction of the 740-series and the deletion of several 240-series models, only 50% of Volvo’s 1985 total sales (52,851 units) are 240s.

 

Model Year 1986

All 240s receive redesigned front ends with larger, aerodynamic headlamps. Sedans also get a slightly revised rear end, with a higher trunk lid. Exterior trim moldings are again revised.

The 240 made some small concessions to aerodynamics, both front and rear, for the ’86 model year. (Source: www.bringatrailer.com)

 

Seating comfort is improved with taller front seatbacks and new-design head restraints which are similar to those used in the 700-series cars.

A center high-mounted brake lamp becomes standard equipment on all Volvos. Central locking and heated front seats are also added to the standard equipment list. Full wheel covers replace the trim rings and small hubcaps formerly used on DL models.

Diesels are dropped from the 240-series.

BMW drops four-cylinder engines from its 3-Series product line, concentrating only on six-cylinder models.

Renault drops its “Sportwagon” at the close of model year 1986. The brand ends the ’86 calendar year with only 4,152 U.S. sales. It is announced that future Renault products will be sold under the AMC badge in the U.S.

The third-generation Honda Accord is introduced for model year 1986.

The third-generation ’86 Accord improved on the virtues of its predecessors. Its U.S.-market success was well-earned. (Source: https://www.hondaofdenton.com)

 

Volvo and GM announce an agreement under which a new corporate entity, Volvo GM Heavy Truck Corporation, is formed, to be run by Volvo.

The August 1986 issue of Motor Trend magazine tests a four-door 240 DL, commenting “If you accept the charge that Volvo’s baseline 240 is a dinosaur, you must also admit that it has been well equipped to resist the forces of extinction.”

They continued: “Volvo claims for the 240 the qualities of ‘durability, reliability, passenger protection, and comfort’, and those buzz words strike a chord with an accuracy rewarded by high sales. Over half of all Volvos sold in the U.S. are 240s…the first car in Volvo’s history to reach sales of 2 million, seems destined to live forever.”

In February 1986, American Honda introduces the Acura Legend, a V6 sedan that is Japan’s first serious upscale entry in the U.S. market. A smaller Integra model, based on the floorpan of the Honda Civic, is also introduced under the Acura badge.

The Legend (and the compact Integra) established Acura, the first upscale Asian brand, as a solid new competitor. (Source: https://acuranews.com)

 

On December 26, 1985, Ford Motor Company introduces the Ford Taurus and Mercury Sable, all new front wheel drive mid-size sedans and station wagons which have been designed and engineered using a new “project team” concept.

Introduced on December 26, 1985, the Taurus and Sable completely reshaped the mid-size domestic sedan (and station wagon). (Source: https://fordheritagevault.com)

 

At Volvo, we bought an early-production Taurus (one of the few “MT5” base models equipped with a five-speed stick shift) and were unimpressed with its leisurely acceleration and woolly gearbox. After a brief stay in Gothenburg, it came back to the U.S. and was purchased by one of our administrative assistants. She loved the car…

For 1986, a total of 8,214,662 domestic cars are sold in the U.S., virtually even with 1985’s sales results. Import nameplate sales rise to a total of 3,239,043 units, an increase of 14 percent over the 1985 figure.

Another all-time record of 113,267 Volvos are sold in the U.S. during the 1985 calendar year. Of this number, 54,195 (nearly 48 percent) are 240s.

 

Model Year 1987

A true five-speed manual transmission, the M47, replaces the familiar M46 four-speed manual with push-button overdrive.

Station wagons now feature a removable rear seat bottom cushion for increased load length capability, and 240 GL models are dropped from the Canadian market.

Cadillacs, Corvettes, GTOs…those are the cars people write songs about. But nobody ever wrote a song about Volvo, right? In mid-April 1987, Volvo celebrated sixty years as an automaker. To mark the occasion, Volvo Car Corporation released an LP titled “I Am Rolling”. It included thirteen tracks variously extolling the brand’s virtues, complete with liner notes from VCC’s then-CEO Roger Holtback. Free copies were distributed to all Volvo employees. They may also have been offered to customers as a dealer giveaway. At work, we jokingly referred to it as ‘Volvo’s White Album’ because its jacket resembled the (much more popular) Beatles release nineteen years earlier.

Sad to say, none of the tracks on Volvo’s commemorative album made the Top 100. (Source: www.discogs.com)

 

The Rover Group re-enters the U.S. automobile market with the Sterling 827, a re-skinned version of the Honda (Acura) Legend, with such traditional British touches as Connolly leather and wood interior trim.

Though based on the Acura (Honda) Legend, the Sterling shared none of that car’s many virtues. (Source: www.motortrend.com)

 

Toyota redesigns its Camry, adding a station wagon to the product line.

We took the new Camry wagon seriously, knowing Toyota’s reputation for quality and durability.  (Source: https://pressroom.toyota.com)

 

Volkswagen closes its Westmoreland, Pennsylvania assembly plant, thus becoming the first post-war “transplant” U.S. auto manufacturer to cease production. (Rolls-Royce was the first. It once assembled automobiles in the U.S., closing its Springfield, Massachusetts plant in 1931, after twelve years of production.)

In October 1987, Canadian assembly of Volvo 240s in Halifax, Nova Scotia, ends. When an expanded and modernized facility reopens several months later, it will build Volvo 740-series cars.

The Car Book lists the “Volvo DL” as a “good choice” in the intermediate size class, based on an index comprised of crash test results, fuel economy, preventive maintenance cost, repair cost, and insurance cost.

In addition, it ranks the Volvo DL as one of four “Best” intermediates using an index of crash test ratings. The 240 was also rated as a “Best Bet” as a used-car purchase.

Total sales of domestic nameplates soften to 7,081,262 units for calendar year 1987, decreasing by about 14 percent. Imports also decline marginally, to a total of 3,144,042 units, down 3% for the calendar year.

Volvo’s calendar year 1987 U.S. sales decline slightly, totaling 106,539 units. Of that total, the 240-series accounted for 49,107 units, or 46 percent.

 

Model Year 1988

Changes to the 240-Series are limited to improved door seals and the addition of a service indicator lamp in the instrument cluster.

The Highway Loss Data Institute (HLDI) names the Volvo 245 one of the safest station wagons available. The Volvo 240 is also named “Family Car of the Year” by Family Circle magazine in the U.S.

The Complete Car Cost Guide selects the Volvo 240 as one of the “Best Buys” in its class.

The Car Book again lists the Volvo DL as a “good choice” in the intermediate size class, based on an index of multiple factors influencing cost of ownership. It again ranks the DL as one of four “Best” intermediate cars using an index of crash test ratings.

The completely redesigned Audi 80 replaces the 4000 series.

Toyota begins production of its compact Camry sedans at an assembly plant in Georgetown, Kentucky.

After it rolled off the Georgetown, Kentucky assembly line on May 26, 1988, the first U.S.-built Camry was displayed in Toyota’s KY office lobby. (Source: www.kentucky.com)

 

Volkswagen drops its Quantum series after disappointing sales.

After five years on the market, Pontiac drops the Fiero.

Calendar year 1988 results in a mild recovery for domestic-nameplate sales, reaching 7,501,095 units. Imported car sales ease slightly to a total of 3,068,738.

Calendar year 1988 Volvo sales in the U.S. total 98,497 units, with 39,597 of them (40%) being 240s.

By 1988, the venerable 240 had long passed its U.S. sales peak, but there were a few more model-year updates and profitable sales years to follow…

(Featured image from www.bringatrailer.com)