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Both those wires end up in the cabin, at the instrument cluster. There is a connector in the engine bay, which in 1983 and on is mounted on the firewall about halfway across. I don't know if your model has one or not.
If it goes, things are easier for you. The connector is able to hold 8 wires, although many are not used. You can disconnect the end not clipped in place, and you will see that it can be opened up and the terminals removed. BE CAREFUL to write down what wire is where. The cells are numbered.
The red wire and the black wire are your concerns. The terminals there are an odd style , so when I did mine I cut it off with about 2 inches wire left. Then I connected it to the new wire, color the same, soldered and covered with shrink tubing. It was easy to get wire at the corner parts store, right gauge and right color. The 1977-78 Volvo Wiring Diagram book shows them at 18 Ga, so if you use 16Ga or 14Ga, you're OK.
Route the wires across the firewall towards the coil, then run them under the upper strut mount, sort of following the a/c and windshield washer hoses. After that you can route them down the inside fender, there may be a holder there, and thence to their respective destinations. Test the female connectors on the alt and oil sender to be sure you have the correct size, Volvo has some off sizes here and there.
It's an easy job. Good Luck,
Bob
:>)
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