In 1995, a high performance model, developed in part with Porsche, was released and designated the T-5R. The vehicle was based on the 850 Turbo, utilizing the
B5234T3 engine with a special ECU (
Bosch #628) that added an additional 2 psi (0.1 bar) of turbocharger boost pressure,
[6] giving the engine an extra 18 hp (13 kW; 18 PS) for a total of 243 hp (181 kW) and 250 lb·ft (340 N·m) of torque. The engine was mated to a 4-speed automatic transmission. The T-5R was renowned as a sleeper car; despite its boxy, understated appearance, it boasted a
drag coefficient of 0.29 and was capable of accelerating from 0 to 60 mph (97 km/h) in 5.8 - 6.0 seconds (depending on transmission and body type). The top speed was electronically limited to 155 mph (249 km/h). The vehicle came standard with
Pirelli P-Zero tires, providing lateral grip of 0.88 g. The engine tuning was co-developed with Porsche, as was the transmission and other powertrain components. Porsche also aided in designing some of the interior, such as the
Alcantaraseat inserts. Only two options were available, a trunk-mounted Alpine 6-CD changer and no-cost 16" wheels for a smoother, more comfortable ride and driveability in snow when using all-season tires.
Also included in the 1995 T-5R package was a front bumper with a lip, rear spoiler, side skirts, polished aluminum door sills, special graphite leather and
Alcantara seats, and a black interior with deep walnut wood grain accents. Both yellow and black versions came with the same black interior as the only choice. The T-5R has an additional badge to the left of the "850" on the trunk, referred to as "The Motorsport badge". The standard road wheel was the titanium-gray 5-spoke 17×7 "Titan". 1995 was the only year that the a model was badged as a "T-5R"; the following year, as Volvo recognized the vehicle's popularity, the model was renewed with the designation "850R".
The Volvo 850 T-5R was also noted for its safety features. It was the first automobile to be fitted standard with four airbags.[
citation needed] The side airbags were installed in the seat cushions. The side airbags were integrated into the rest of the Volvo model line the following year as an option, and became standard a year after that; other manufacturers soon followed suit. The car was also fitted with an early example of
daytime running lamps. It was also the first sedan to have three-point seatbelts at all five seating positions (previously, cars had only a lap belt for the center rear seat). The T-5R also used the OBDII diagnostics system, a year before OBDII was made an automotive standard.
5500 T-5Rs were produced worldwide, of which 904 went to the United States, 185 were yellow. The 1995 850 T-5R was limited in exterior paint color choices:
- Cream yellow - 1975 worldwide including saloon and station wagon
- Black - 3025 worldwide including saloon and station wagon
- Emerald green metallic - 0500 worldwide including saloon and station wagon