The Volvo 740 is launched with a GLE and a turbo version. The 740 GLE has a four-cylinder, 2.3-liter engine with a breakerless ignition system. The 740 Turbo has a 2.3-liter, 182-bhp (DIN) engine, turbocharged, with an intercooler. There is also a six-cylinder, 2.4-liter diesel version.
The Arizona Proving Ground for hot weather testing is opened in the USA.
Roger Holtback takes over from Håkan Frisinger as president of Volvo Car Corporation. Frisinger becomes president of the Volvo Group, and Pehr G. Gyllenhammar is made chairman of the board.
ABS (Anti-lock Braking System) is introduced.
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