The motion picture industry celebrated its Centenary in honour of the Lumiere brothers. On 28th December 1895 the Lumiere brothers organised the world's first public showing of a film to a paying audience in Paris.
- Both Volvo Buses and Volvo Trucks introduced environmental concepts that attracted a great deal of attention; the ECB, Environmental Concept Bus, and the ECT, Environmental Concept Truck.
- AB Volvo acquired the remaining 50% of the outstanding shares in Volvo Construction Equipment (formerly the VME Group).
- In June Volvo acquired 51% of the Canadian bus manufacturer Prévost Car Inc.
- Two new car models, Volvo S40 and Volvo V40 were presented.
- Volvo Buses' B12-600 was designated "Coach of the Year 1996".
- Richard Rydell drove his Volvo 850 to a series of victories in the British Touring Car championship.
- Volvo Construction Equipment introduced several new products in 1995.
- The Volvo Museum was officially opened in 1995.