(oops - this was meant to be a reply to 120 MPG question, so it appears to be in the wrong forum! Sorry about that!)
I've been keeping a log of my MPG in the 1800ES since I got it. After 40000 miles the average is 21.6 MPG (US gallons!) Much of that would have been either driving on the freeway to national Volvo club meets, or taking the car for a "Sunday drive". On straight freeway driving (60-70 MPH) it averages between 24-26 MPG. FYI I have the ipd "street torque" camshaft, the car is a manual with 4.30 rear end and OD, the head has been off once for a re-fresh, but the bottom end has never been touched (it has about 150,000 miles on it since new). I have an O2 sensor, and it runs pretty much at stoichiometric at highway speeds. I'm now located in Australia and have the car with me here, so I think in "litres per hundred kilometres" now - whoever thought that one up should be shot!
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