The 960 was introduced in 1991 along with a new family of modular engines, and then was substantially revised for the 1995 model year, improving the handling.

Some 900 Series were built as chassis for ambulances and hearses after the main production run had been completed.

Introduced in September 1990, the 940 was essentially a cosmetic reskin of the 740[7] aside from the completely redesigned rear from the C pillar back on the sedan.

The 940 was more closely related to the 740 than the 760, sharing similar drivetrain choices and sheet metal from the A-pillar forward.

The 760 / 960 front sheet metal, independent rear suspension, dashboard, and other interior features were all exclusive to the two upscale models.

A low-pressure turbocharged version of the B230, the B230FK, debuted in 1994 – maximum power was only up slightly over the B230FB, from 131 to 135 PS (96 to 99 kW), but torque increased throughout the range and there was virtually no turbo lag due to the small size of the charger.

[7] Originally intended for Italy and other markets with significant taxation thresholds at two litres, it was later also installed in the British-market 940 SE.

In 1995, the manual gearbox was replaced with a full 5-speed (M90), and the ZF was abandoned for gasoline engines and fitted only on diesels.

In Sweden, the 940 SE was an ordinary non-turbo 940 with some optional extras as standard, most notably painted mirrors and bumpers.

In Australia, the 940 SE was a high trim level with only the 2.3 Turbo B230FT with some extras as standard and featured, rather unusually, full painted bumpers.

In Thailand the 940 SE was a Turbo (LPT) model with leather seats, ABS brakes and SRS Airbag.

Towards the end of the model cycle, certain countries (as Sweden, Germany and Switzerland) received a well equipped, limited series badged "Classic".

For the 1992 model year the 940 GLE was downgraded with a 114 hp (85 kW) version of the 2.3-litre four-cylinder engine and sold as the 940 GL.

The 1991 960 was an evolutionary progression of the 1990 760, but it was also one of the first cars to feature the work of British designer Peter Horbury.

[15] Nilsson, a small coachbuilder in Laholm, Sweden, worked under contract with Volvo to supply the stretched 960 Executive (and the later Royal model, with Hermès leather interior).

Nilsson offered a number of different lengths and sealed the window in the C-pillar for more privacy in the rear.

The rear suspension received a completely redesigned multi-link independent system with a single fibreglass transverse leaf spring.