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VV, I don't know the actual reason(s), but it's consistent with Volvo's practice of incremental improvements. I guess they'd taken the B18 about as far as they sensibly could, so the next step was to start over with a bit larger motor. ???
Note that these motors came in several states of tune: economy (the single carb models never sold in the U.S.), sport (the standard motors to us), and performance (the 1800 variants). The performance B18 makes more horsepower than the standard B20, but that's not a fair comparison. In the standard variant, the B18 peaked at 95 HP while the B20 made 112, and the performance B18 made 115 compared to the B20's 130. Those gains are pretty much in line with the displacement increase.
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