Thanks for making this post. I have the same project coming up to transfer the hitch from my now retired 1980 245 and installed on my '93 245 VolvOlds V8. Because I was towing mostly Volvos I made a "light bar" from a wooden dowel and hung the tailight fixtures from a scrapped BMW 2002 on the dowel with 20' of wiring connected to all the normal functions, including the backup lights. I then hung the light bar from the trunk or hatch of the towed car. You could do the same sort of thing with your small trailer. The common trailer lamp hookups mess up the Volvo's "lamp out" feature. - Dave
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