Volvo 850
Behind the Volvo 850 model lies one of Sweden’s largest industrial investments to date, valued at 16 billion SEK. Development began as early as 1978, when Volvo’s management encouraged employees to think freely and aim for the stars—hence the project was named Galaxy.
When the Volvo 850 was launched 13 years later, it broke completely with how Volvo’s cars had been made before: it was the first large model with front-wheel drive, a transversely mounted five-cylinder engine, a technically innovative gearbox, a smart rear axle, and an integrated side-impact protection system with side airbags.
In April 1978, newly appointed CEO of Volvo Car Corporation, Håkan Frisinger, called a meeting with key personnel in a small conference room at Sörredsgården in Gothenburg. Both the head of product planning, Dan Werbin, and the project manager for the upcoming 760 model, Hans Gustavsson, were present. The meeting took place against a bleak backdrop: the second oil crisis had just passed, the merger with Saab had collapsed, the Swedish government had denied Volvo a conditional loan of one billion kronor, a government report stated that Sweden’s car industry could only survive by producing smaller and more affordable cars—and in the U.S., Volvo had recently suffered from record-high inventories of unsold cars.
Volvo’s strategic direction: securing the future in uncertain times
Despite these challenges, the future of Volvo’s cars still had to be discussed, and this time, it was truly about the future. Håkan Frisinger opened the meeting by urging his colleagues to set aside current problems for a moment, saying:
"Now is the time to look at least ten years ahead. Despite the difficult economic situation, we must prepare ourselves. We must assume that Volvo Cars will succeed. And by doing so, we will also ensure survival."
Frisinger concluded with another call to action:
"Let’s use the 1980s to reverse the negative trend and instead make ourselves truly strong—in terms of products, competence, quality, organization, and industry."
From idea to production: The industrialization of the Volvo 850
This meeting became the starting point for the development of both the 400 and 800 series. However, while Håkan Frisinger pointed out the direction as early as 1978, the actual 850 project did not begin until 1986. It involved both industrialization—the car was initially to be manufactured only in Ghent, Belgium, while the engine and transmission were assembled in Skövde—and the construction of an entirely new vehicle from the ground up.
The new model would also break completely with Volvo’s previous designs. It was to feature front-wheel drive for the first time in a large Volvo model and a transversely mounted five-cylinder engine—both completely new innovations. A transversely mounted engine was the most efficient solution for maximizing cabin space while also offering the best potential for reducing emissions, as exhaust gases could be directed to the catalytic converter without energy and heat loss.
Innovative Engine Solution: Volvo’s transversely mounted five-cylinder engine
Most volume car manufacturers had opted for four-cylinder engines, which Volvo also chose for the 400 series. However, for the larger 850, Volvo’s engineers aimed for a 2.5-liter engine to meet torque and smoothness requirements. However, increasing the size of a four-cylinder engine beyond two liters would cause vibrations, requiring balance shafts—a costly and complex solution.
A common alternative would have been a transversely mounted V6, but Volvo opted for a bolder approach, developing a five-cylinder aluminum engine. It was based on the 3.0-liter six-cylinder engine with 204 horsepower, introduced in the 960 model in 1990. For the 850, engineers simply removed one cylinder, resulting in a 2.5-liter displacement and an initial output of 170 horsepower.
Groundbreaking Technology: Volvo’s three-axle gearbox changes the game
Since the engine took up significant space, an innovative transmission solution was also required. Typically, a manual gearbox has two shafts: a primary (output) shaft and a secondary intermediate shaft. Volvo’s engineers instead designed a gearbox with three shafts, two of which were secondary. This allowed the gearbox to be extremely short—only 353 millimeters.
Its weight was also remarkably low: just 46 kilograms. This ingenious transmission required almost no maintenance, including no oil changes.
Safety Innovations: Volvo’s revolutionary Side-Impact Protection System (SIPS)
The engine and transmission were two of the groundbreaking features that gained attention when the Volvo 850 premiered in June 1991. Other highlights included the newly developed Delta rear axle, which successfully combined comfort with excellent driving characteristics without compromising space, and the self-adjusting seatbelt in the front seats.
Additionally, the newly introduced integrated Side Impact Protection System (SIPS) came as standard. This advanced system absorbed crash energy from side collisions in multiple ways. The B-pillar, seat frames, under-seat beams, and a structural box between the seats—called the SIPS-box—all worked together to minimize intrusion from an impacting vehicle.
The idea for SIPS originally came from Nils Bohlin, the man behind Volvo’s three-point seatbelt, who patented the concept as early as 1974. Four years after the 850's introduction, side airbags were also added to the seatbacks.
Design History: Jan Wilsgaard’s final project at Volvo
The design of the Volvo 850 was the last project led by Jan Wilsgaard, who had worked at Volvo since 1950. Many were surprised that the car did not look particularly new and closely followed the design language of the 700 series. But this was intentional.
Volvo’s leadership recognized that the technical revolution beneath the body was so significant that customers might not be ready for a completely new exterior design. Once again, Wilsgaard collaborated with the Italian design firm Coggiola, which resulted in slightly rounder shapes than the initial proposal.
Major design changes in Volvo’s models would instead come under the leadership of the new design chief, Peter Horbury, starting with the S40 (1995) and especially the S80 (1998).
Volvo T-Gul: An iconic performance car becomes a sensation
Less than two years after the launch of the Volvo 850, the station wagon variant arrived, quickly becoming a favorite among Swedish customers. A simplified version of the five-cylinder engine with two valves per cylinder was introduced, along with a five-cylinder diesel engine sourced from Volkswagen.
One of the most talked-about versions was the Volvo T-Gul (TR-5), launched in 1995. With 240 horsepower, it was the most powerful production car Volvo had ever made. Initially, only 2,500 bright yellow examples were planned. In the end, 2,537 were built, with 321 allocated to the Swedish market.
An advertisement for the car read:
"We’re not trying to sell you this car. We’re just letting you know it exists."
That was enough. Demand was so high that Volvo also produced 2,516 black and 1,911 green models with the same specifications—all individually numbered.
Volvo Takes the Racing Scene by Storm: The 850 in BTCC
To further enhance its sporty image, Volvo entered the British Touring Car Championship (BTCC) the year before the T-Gul’s release, collaborating with Tom Walkinshaw Racing (TWR). Volvo surprised everyone by competing with two station wagons.
Behind the wheel of one car was Swedish driver Rickard Rydell, while Dutchman Jan Lammers drove the other. However, after just one season, the regulations changed, effectively banning station wagons from competing.
In 1996, before the model received an update and was renamed the S70/V70, the 850 became Volvo’s first all-wheel-drive passenger car.