Dear readers, you’ve reached the sixth chapter of the Volvo 240’s long-running stateside history. By the close of the 1988 model year, these stalwart examples of Swedish design had been plying the highways and byways of the country for thirteen years (or twenty years, if you concede that the 240 wasn’t a completely new car, but a significant re-engineering of Volvo’s 140-series).
As we noted in last week’s Chapter Five, Volvo’s corporate attention was mostly turned in other directions by now- steady development and renewal of the 740- and 760-series cars and the addition of the Bertone-built 780 coupe, not to mention the debut of the compact-platform 480 ES (another small Volvo which never made it to the U.S., and which will be the subject of a future Auto-Biography).
That’s not to say that the 240-series had become Volvo’s red-headed stepchild – it still accounted for about one-third of Volvo’s global sales and profits, and continued refinement was needed to keep those kronor flowing into Gothenburg. In 1988, Volvo Car Corporation CEO Roger Holtback established the “240-bolaget” (240 company) as a separate business unit within the larger corporation. A small but dedicated team of about forty people were then co-located next to Volvo’s Torslanda production line to oversee all aspects of the 240’s further development and production, including continued quality improvements and compliance with evolving safety standards. Let’s look at what they accomplished.
Model Year 1989
Exterior changes for the 240 series include black-painted steel wheels on DL models, as well as redesigned wheel covers. A convex right-hand outside rear-view mirror is added to provide drivers with a wider field of view; convex left-hand outside rear-view mirrors are still prohibited in the U.S.
DL models get new cloth upholstery, and so-called “top tether” anchorages are added to all models for easier installation of child seats. Head restraints are added for outboard rear seat occupants; in GL models, they include padded, upholstery-matching covers.
New fuel and ignition systems appear.
Audi renames its former 5000-Series “100” and “200” to coincide with the car’s European model designations. Some observers say it is an attempt to re-launch an essentially unchanged car to help the brand recover from widely-publicized allegations of “sudden acceleration”.
Peugeot adds the compact 405 sedan to its U.S. product lineup. It has high hopes for the 405, which was named European Car of the Year in 1989.
Annual “transplant” car production in the U.S., now exclusively Asian since Volkswagen’s pullout, surpasses one million units for the first time during calendar year 1989. Canadian “transplants” add about 120,000 more vehicles, (8,274 of which are Volvo 740s).
Again, the Complete Car Cost Guide names the Volvo 240 one of the best buys in its class, and The Car Book continues to rate the 240 as a “good choice” among intermediate-size cars of its size in crash safety indices.
Calendar year 1989 sales of domestic nameplates fall once again, to just over 7,000,000 units. The total of 7,014,850 represents a decline of nearly 500,000 cars from the previous year. Imported car sales also decline roughly 10%, to a total of 3,068,738.
In a down year for the industry as a whole, Volvo’s U.S. sales increase to 102,620 units. The 240-Series represents 40,881 of these (over 39%), also an increase over the previous year.
Model Year 1990
All 240s are now badged “240 DL”, as the GL models are dropped. However, the GL’s manually-operated sunroof is again made available as an option on DLs.
A driver’s side airbag becomes standard equipment on all U.S. 240 models; the airbag is optional in Canada. Cruise control is a factory option, installed on most U.S. 240s.
Power windows are also added to the standard equipment list, along with rear door audio speakers. Station wagons have a revised tailgate with flush-mounted glass.
Early in the 1990 model year, daytime running lamps are introduced in Canada.
Ford quietly drops its Merkur product line, as the last XR4Tis are retailed. It has also attempted to sell a version of the European Ford Scorpio hatchback under the Merkur badge in the U.S., unsuccessfully.
The fourth-generation Honda Accord is introduced for model year 1990. It is now considered a “midsize” sedan by the U.S. EPA due to its increased interior volume. (The Volvo 244 is rated a “compact” sedan by the EPA.)
Lexus and Infiniti expand the Japanese presence in the upscale sedan market with their introductions of the LS400 and Q45, respectively.
Peugeot adds a station wagon version of its compact 405 to its U.S. product range, and Volkswagen introduces its Passat, a new line of midsize sedans and wagons with which it hopes to compete against the Honda Accord and Toyota Camry.
After seven years of development, GM’s Saturn Corporation rolls out its first products. The initial reaction is good, although production startup problems severely limit the output of Saturn’s Spring Hill, Tennessee assembly plant.
Ford buys Jaguar and General Motors acquires a 50-perent stake in SAAB’s Car Division.
For the third consecutive year, the Complete Car Cost Guide names the Volvo 240 one of the best buys in its class. The 240 station wagon is among the “best” intermediate-size wagons, based on The Car Book’s ranking of crash test indices.
Calendar year 1990 ends with a total of 6,842,733 domestic nameplate sales, a drop of about 2.5% from 1989. Import nameplates also suffer a 300,000-unit decline, totaling 2,452,948 units.
89,694 Volvos are sold in the U.S. during 1990, down over 12% from last year’s levels. 240-series sales, at 31,954 units, account for over 35% of the total.
Model Year 1991
Antilock brakes are a new option for 240-series cars, all of which are now badged “240” with the demise of the GL, although the GL’s leather upholstery is now available as an option. All 240s now feature factory-installed audio systems with an anti-theft feature.
Improved air conditioning appears, automatic transmission-equipped cars receive a shift interlock device, and the 240’s previously color-coordinated instrument panels revert to all-black.
A limited-edition “240 SE” station wagon is introduced, offering the following upgrades and changes from the standard 240 five-door:
- Antilock brakes
- Leather upholstery
- Alloy wheels
- Roof rails
- All-black grille and exterior trim
In April, an Insurance Institute for Highway Safety (IIHS) Status Report shows that the 1984-1988 model year Volvo 245 recorded the lowest occupant death rate of 134 car models surveyed during calendar years 1985-1989.
The November 1991 issue of Money magazine names the Volvo 240 as the year’s safest imported car. The 240 retains its position as a “best buy” in its class according to the Complete Car Cost Guide.
The Car Book continues to rate the 245 among the best in its class based on an index of crash test ratings.
A Honda Accord station wagon is added for the 1991 model year.
Mazda announces plans for its own upscale brand, Amati, which is scheduled to introduce a pair of sedan models midway through the 1994 model year.
In August 1991, Peugeot announces its withdrawal from the U.S. market after selling cars here since 1958.
Sterling also announces that it will leave the U.S. market after four years of declining sales and quality issues. This effectively marks Rover’s third departure from the States, as the brand had previously exited the market in 1970 with the demise of its 2000 series, and again in 1980 after the failure of its SD1.
Calendar year 1991 results show domestic models recording sales of only 6,072,255 units, the lowest total since the recession year of 1982. Imported-car sales also decline, totaling 2,103,759 units, down 14% from the previous year’s level.
Volvo’s U.S. sales during calendar year 1991 total 67,698 units, down nearly 25% from 1990. 240-series sales volume drops 29% to 22,664 units, but it still accounts for over one-third of Volvo’s total.
Model Year 1992
Antilock brakes become standard equipment on all U.S.-market 240s. Canadian models follow at midyear.
The 240 GL sedan is re-introduced in Canada only. It adds the following equipment:
- Sunroof
- Heated power mirrors
- Heated front seats
- Rear hat shelf audio speakers
Driver’s SRS also becomes standard equipment on Canadian 240s.
Suspension systems are revised for improved comfort, and all 240s except the GL get all-black grilles and exterior trim moldings.
On June 12, 1992, the National Highway Traffic Safety Administration (NHTSA) releases the results of the latest 35-MPH frontal barrier crash tests in its new Car Assessment Program (NCAP). A 1992 model year Volvo 244, equipped with a driver’s side airbag, records the lowest driver’s Head Injury Criteria (HIC) of any currently-available passenger car ever tested by the agency.
For the fifth year in a row, the Volvo 240 is rated a “best buy” in its class by the Complete Car Cost Guide, and The Car Book calls the 240 a “best bet” among intermediates, continuing among the best in its class in crash test ratings.
In response to sinking market share and continuing heavy losses, General Motors’ board of directors ousts the company’s chairman, vice-chairman, president, and two executive vice-presidents. John Smale, of Procter and Gamble, becomes GM’s first “outside” chairman since 1937.
Oldsmobile Division sales fall to 389,173 units in calendar year 1992, leading to speculation that the brand will be dropped. Oldsmobile’s 90th anniversary is spent denying these rumors.
Mazda pulls the plug on its proposed Amati franchise, citing changed market conditions and a more pessimistic outlook for future luxury car sales.
During 1992, Yugo pulls out of the American market, ostensibly due to supply constraints arising from the civil unrest in Yugoslavia.
Calendar year 1992 Volvo sales in the U.S. total 67,916, a 218-unit increase over 1991.
The 240-series accounts for 23,121 of the total, or about 34% of Volvo’s calendar-year U.S. sales, 457 units more than the previous year.
Next week, this multi-part chronicle of the 240’s U.S. journey will conclude with a focus on the 240 Classic.
Here are previous chapters One, Two, Three, Four, and Five.
For all those, who want to get some more information on the “240 bolaget”:
https://www.240.se/litteratur/240-bolaget.pdf
Unfortunately, it is avilable in Swedish only. But if you’re interested in, you may mark the pdf-text and let a translation program the work to be done step by step.
Something I nearly had forgotten: Chapter 6 (pages 43 ff.), referring to the US-market, is in English. And as far as I can see written by a certain highly regarded cc contributor.
Back when I was travelling a lot for work, I got a 1990 Volvo 240DL as a rental car…my sole Volvo experience (well, maybe not, I rode in a co-worker’s 240DL sometime in the 80’s). Ended up staying over a weekend in Southern Florida, and decided to drive to Key West (had never been there, it’s my only time) from Ft. Lauderdale during Superbowl weekend in 1991. Probably remember more about the radio stations (getting a Cuban station, and also listening to the Superbowl as I drove back kind of later than I planned, it took awhile) than the Volvo itself…but that’s good I think, it didn’t intrude, it was capable and wasn’t showy, but of course you can’t get too much impression from driving it just the term of the rental.
Interestingly my Dad never bought one; he was a longtime import buyer (he drove early 50’s Beetles in the US Army in Germany), but we also always had a large domestic wagon, so the import would typically be an inexpensive rather than mid market car like the 240 (or even its predecessors). Plus, we moved around a lot but had 2 different stints living up in Vermont, where traction is a big deal, he’d probably have gotten a Saab due to that rather than a RWD Volvo back then.
The funny thing, one trip back east (where my Dad was travelling on business but we were going along on vacation, staying at relatives) my Dad rented a Peugeot 505 through Hertz in Newark…I thought that was quite unusual, especially since I actually worked for Hertz up in South Burlington for 2 years…even though that was almost a decade prior, we had nothing in our fleet up there like a Peugeot….but it was good to try one out, since less than a decade later Peugeot pulled out of the US and I doubt I’d ever have gotten in one otherwise.
Not long after that, my Dad retired, and I started getting enough vacation where we started driving to visit relatives in the Northeast (about 3400 mile round trip from where we live) instead of flying….we did that all the way up to 2011 when we drove up for my Cousin’s wedding, Dad got cancer the next year, and those trips (not quite every year but pretty often) came to an end, as Dad himself did 5 year later.