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This is a question a few of us have actually discussed around the fire pit having a few beers at the track. We have about 4-5 Volvo 2/7/9-series daily drivers in the paddock at any one time.
In reality a new 240 would have to meet a bunch of new regulations that would very difficult to achieve and still keep the look, feel and soul of the car:
Multiple additional airbags
Pedestrian safety (for Europe)
Rear view camera
Emissions
I am pretty sure the 240 could pass the newer offset crash test and the roll-over test but the airbag thing is going to be a problem.
The A and B pillars are too slim for airbags...which is part of what gives it the awesome visibility.
The passenger needs a front airbag.
Driver needs a knee airbag.
Both rear passengers need side airbags.
So to accommodate all of this we are talking about thickening the A pillars and then lowering the headliner to accommodate side curtain bags front and rear...no sunroof and slightly compromised forward visibility.
Now there is emissions and fuel economy. Realistically anything this small would need to get 24 city and about 33 highway to even be considered but I think an updated version of the low pressure turbo B200ft with a 6-speed manual or conventional automatic could do it (keep in mind it will realistically weigh 300 #'s more just for safety equipment). This is assuming the buyers would put up with the same level of performance the B230F was achieving by the end of the production (9-10 seconds to 60 mph).
ODBII was mandated in 1996 so gone is the magic flashing LED. No one will accept the liability for giving a car decent tow ratings so it would be lucky to get 1500# rating. Let's be honest, we would all want the car to be a little quieter so additional sound deadening would be needed. We all would prefer a less failure-prone or easier to access blower motor, the 1993 HVAC and blade style fuses all in one place.
When you add that all up, a car that adjusted for inflation would sell in the mid $30's would need almost everything done to it. Then it would have to be federalized. In the end, you are probably looking at a base model that would actually have to sell in low $40's with only basic equipment (electric windows, remote locks, AC and a commercially available stereo with bluetooth, the rearview camera screen in the mirror, etc). Without major structural changes (designing to the tests) it would likely by lucky to get 3's and 4's in crash test.
So would you buy the car I just described for say, $42K? It competes against a TDI VW Sportwagen at that price which is roomier, has better crash ratings, is quieter and gets much better fuel economy.
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