By "what was the approach," I mean, what did Volvo have planned for the 200-series?

At that point in time the model line was nearly 10 years old, and the cars were still nearly identical to the first ones that rolled off the line. However, the 200-series was definitely reaching its peak popularity right around this time. I would think a bright (and long) future was expected.

The turbo models were being discontinued. Did Volvo plan on bringing these back for the 240s, or were the 160hp+ stock engines gone for good?

The front end was radically changed. This alteration had already been done in some/all European 240s, but it was performed for the first time for U.S. Volvos in 1986. Why was this change made? Was it an attempt to "update" the uniform model line?

Was there an expectation that the 200-series was slowly coming to an end? In 1985 the 400-series was introduced (only in Europe, but it had been hoped to make the trip to the U.S. as well), and the 700-series was experiencing a decent demand (though it would ironically be outlasted by the 240s by a year!). Undoubtedly Volvo was making preliminary sketches for an "upgrade" of the 700-series that would be embodied in the 940s of 1991, perhaps rendering older model-series unnecessary.

Were there plans to end this model line in 1986, or at that time was it hoped that this preeminent Volvo car would continue to be produced indefinitely?
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'89 244 GL--25/22 ipd sways, Volvo truck amber turn signal lenses