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Hi Arm,
First off, the 740 got a facelift in the USA in 1990. This gave the foundation for the new 940 series in 1991. As you said, the 9 has a higher rear end. The interior got some upgrades, i.e. climate control, new seat design, and newer dash. Mechanically, the 900 has the same auto tranny (no 5-speed in the US), and same engines. Volvo redesigned the car to have a more 50/50 fr-rear weight ratio to make these cars handle better. In 1991, the 940SE was a turbocharged version of the 960 with a 4cyl. It had IRS, and all the goodies of the 960. In 1992, the 960 was introduced with a 2.9 litre inline 6. This had every option imaginable. In 1995, the 940 was retired and the 960 got a facelift which reduced the wind drag. The engine was also updated with more torque at a loss of horsepower. In 1997, the 960 was rebadged S/V90 to correspond with the rest of the Volvo model line. 1998 was the final production year of the rear-wheel drive Volvo.
Hope this helps,
Matt
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'90 740 Turbo with lots of upgrade (lady ran a red light and totalled it), 96 960 bone stock (to try to fill the gap that the 740 left me) 83' 242GLT, '78 245DL
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