The People's Congress in Moscow took the historic decision to dissolve the People's Republic of the Soviet Union.
- Volvo announced that the first woman had been appointed to the Board, Baroness Lydia Dunn, a member of the Hong Kong administration.
- The Munktell Museum was opened in Eskistuna, Sweden, the home of a collection of historical VCE machines.
- Volvo launched its front-wheel driven 850 and the side-impact protection system, SIPS, made the world news.
- Volvo Buses introduced all-round models with rear-mounted engines.
- The Zettelmeyer models provided Volvo with a complete range of small wheel loaders.
- The Swedish-built Nimbus 26 was one of many high-speed crafts powered by Volvo Penta KAD42.