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When I didn't pass inspection one year with my 960 due to the parking brake not holding, I went to my mechanic. He found that the parking brake shoe/cable was binding; he did a quick fix, but told me that after I passed, I shouldn't use it until we'd thoroughly repaired it. A couple months later, either my wife or I inadvertently used it and a short time later, accelerating from a stop we heard a terrible "bang" from the rear. Naturally I stopped, but since I was in a bad spot, I decided I had try to pull away and I was able to and drive home. As I did, my daughter heard what she said sounded like a piece of metal hitting the pavement. Next day at my mechanic's, he showed me that the parking brake shoe or cable in my right rear brake assembly had literally bound up the rotor and as I accelerated the explosion was a piece being torn out of the rotor. The hole was the size of a quarter easily. Since I had to in order to pass inspection, we ended up replacing rotor, parking brake caliper and cable. Mechanic claims that this is a frequent issue on RWD volvos, 7 and 9 series at least. He has a very busy shop and sees hundereds of volvos, and I respect his knowledge. Good luck.
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