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Hello,
I started down the route you are starting down and went another way.
I purchased a 1990 Ford Ranger rear end with an axle ratio of 3.45.
I removed the axles. One axle is longer than the other so I got another short axle(they let me take it with a promise I would bring back the long axle in exchange)and I took it to Mosier Engineering and had them cut the housing down so the short axle would fit ($52.00). This gave me a hub face to hub face measurement of 53 1/2 inches, an inch narrower than the Volvo. It has the same bolt pattern and the Volvo lug nuts fit.
I went the 4 cylinder Iron Duke w/5 speed route instead of your V6. The stock Volvo rear end may give up the ghost if thrashed too much.
Just some food for thought.
Best,
Ray J.
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