My two cents: the non-turbo would be a drag with an automatic transmission. Sure it's got about the same power to weight ratio as a turbo RWD Volvo... but its torque curve is nowhere near as flat.
IMO the shifter is much nicer than the M46, but 5th feels a bit far away. The interior on the S70/V70 is much improved over the 850 (which is about on par with the early 740s).
I don't think you're stepping down in terms of reliability, considering that the 240s were not very reliable cars, and had sub-par electronics and nightmarish wiring. Self-destructing wiring harness anyone? Around here at least, the 850s are starting to show up with much more frequency in the Pick-n-Pulls.
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alex
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