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Mostly it's the freedom of RWD. In the "old" days, the Volvo turning radius wasn't as noteworthy as today, because cars were typically RWD -- today things are very different. How many RWD cars are left (Mercedes?)?
With RWD, there is no driveshaft (I can't remember the special name, "halfshafts"?) that goes into the front wheels to make them turn.
Attaching such a shaft, in a FWD or 4WD/AWD car, to the inside (or backside) of the hub prevents the wheel from turning as far around as it could without it -- even with universal joints, there is just so much that the wheel can turn before the joint is jammed and can't rotate the hub anymore. Yes, some short wheelbase FWD cars have a tight turning radius, but not as tight as they would have if they were RWD.
Free of that shaft, a RWD car's front wheel can turn (steer) until it's close to a right angle to the long axis of the car (or the plane of the rear wheels), and the front of the car can swing around in a tight arc with the rear wheels hardly advancing (especially if you've built up some rotational momentum by turning the steering wheel gradually from straight ahead -- but don't try this on ice or snow, or the front wheels will merely slide forward and act as a plow to stop the car).
Other factors that tighten a turning radius include wheelbase (a shorter wheelbase has a smaller turning radius), but Volvo 240's aren't particularly long or short wheelbase cars -- sort of in-between -- so it's almost all due to not having to accommodate room for, or limit turning because of, the shafts.
Regards,
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