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I think there three main reasons for lack of N. American developement of the OHC engines: the 240's weigh hundreds of pounds more than the 140's, turbochargers, and the fact the US did not get the B23E engine.
Weight difference is self explanatory.
Turbochargers would put any Volvo into racing classes where its chssis limitataions would be even more pronounced.
B23E (Canadian specs: 136bhp, 137 lb/ft @4500rpm) did not comply with US emissions. 140hp elsewhere. This is more power than any NA B20 made.
As I am sure you know, there is whole race class in Sweden deicated to this engine.
Another point is that the OHV engines have been raced and 'hopped up' in the US since the fifties. Volvos, at one time, were light cars. Light cars and a long tradition of racing make for competitive machinery.
A stock B23E in a 140 would be quite entaining.
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