In August 1974, Volvo presented a new generation of cars called the 240 and 260 Series.
These new models had been developed from the 140 series and were very similar to their predecessors. The changes included a new front, large bumpers and a further-developed chassis, featuring a front-wheel suspension system of the McPherson type. At the same time, a new 4-cylinder engine series with an overhead camshaft began to be used. The previous 4-cylinder was still offered in basic versions for some time.
Two-door cars were still very much in demand, particularly on the Nordic markets, and it was therefore only natural to include a 2-door in the program. However, as the trend was moving towards 4-door cars, the 242 were taken out of production long before the 244 and 245.
Over the years, the Volvo 242 was produced with many different engines and gearboxes.
The most spectacular versions were the 242GT introduced in the late 1970´s and the 240 Turbo of the 1980´s marketed in North America, both cars offering spectacular performance and answering in full to the classical proverb 'a wolf in sheep's clothing'.