The Autumn of 1990 marked the launch of the Volvo 960 in time for the 1991 model year. This was the replacement for the 760. The 1991 960 was an evolutionary progression of the 1990 760, but it was also one of the first cars to feature the work of British designer Peter Horbury.      

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The most significant change was that, in most markets, the 960 was offered with an all-new aluminium 24-valve DOHC inline six-cylinder engine, often referred to as "white block" in the Volvo community due to its bare aluminium block. Maximum power was 204 PS (150 kW) at 6,000 rpm. Some markets, such as Australia and Japan, saw 1991 960s equipped with the same B280E/F V6 engine (145 PS or 107 kW at 5,100 rpm) that had powered the 1990 760.[13] The 1992 model year saw the U.S. introduction of the DOHC inline six-cylinder engine. For the Italian and Portuguese markets, the 960 was available with the 16v 2-litre turbo (190/200 PS, 140/147 kW) from September 1990 until September 1993 along with the inline sixes. Certain markets also received the 2.3-litre turbo 'Redblock' four with 165 PS (121 kW), and the Volkswagen built D24TIC with 116 or 122 PS (85 or 90 kW).