The 700, designed by Jan Wilsgaard, was originally to have been a replacement for the 200 series, but production of that model continued until the early nineties.

[7] It was the lower-end version of the original 760, intended to be a mid-size car that offered more style, performance, and luxury than the 200 series.

This unit produces 160 PS (118 kW) at 5500 rpm, ten brake horsepower more than the preceding non-intercooled B19ET variant, enough for a claimed 200 km/h (124 mph) top speed.

[9] Model year 1986 marked the worldwide introduction of the station wagon; other differences were limited to a new font for the "740" badging and new hubcap designs.

First shown at the 1988 Geneva Motor Show with tentative specifications but only going on sale with the introduction of the 1989 model year cars, a 16-valve version of the larger B230 engine was introduced (B234).

Production of the 740 ceased on 2 October 1992, though the engine, transmission, chassis, and other details continued in the Volvo 940 (introduced in September 1990), which was essentially identical to the 740 with the exception of the rear of the sedans.

The 740 Turbo switched from the Garrett T3-series turbocharger to the Mitsubishi TD04 series, which offers quicker spool-up and better boost at low engine speeds, albeit at the expense of top-end performance.

The newer fuel system offers onboard diagnostics, which are accessible from the engine compartment and require no special equipment.

Late in 1991, Volvo offered a sedan and estate badged the 740 SE, standing for "special equipment".

Mechanically, the 740 SE was the same as a normal 740 Turbo, but with many features, such as a power sunroof and leather seats, as standard equipment.

The SE also had a special factory color-keyed body kit, including front and rear bumpers, side skirts, and a spoiler for the sedan.

Volvo called the system Constant Track Rear Suspension, drawing attention to another benefit of a live axle.

[13] It was introduced to the U.S. in 1982 for the 1983 model year as the 760 GLE saloon, with the V6 engine coupled to an automatic transmission, having been launched in Sweden in February 1982 and in Britain from July 1982.

[16] The Turbo Diesel was somewhat handicapped in the United States market by only offering a five-speed manual transmission.

From the outside, the most noticeable of the over 2000 changes were the revised front sheet metal, including an aluminium hood, recessed windscreen wipers, and new aerodynamic headlights.

The top versions were now equipped with a new electronic climate control (ECC; standard on cars sold in the US).

[19] The new 4-link rear axle also required a new fuel tank, which was in the form of a saddle, sitting atop the driveshaft.

[20] This was due to the weight increase: the new rear suspension weighed about 40 kg (88 lb) more than the old one, and Volvo determined that the loss of payload would not be worth the comfort improvements.

Originally, it had been planned to use a smaller, 2,458 cc turbocharged, version of the PRV V6 (as seen in the Renault 25 and Alpine),[26] which had already been successfully tested in 740s and 760s.

From August 1987 the 780 came equipped with Volvo's independent rear suspension, which used self-leveling Nivomat shocks to keep ride height correct.