The first generation of the VOLVO V70 was introduced in 1998 and was simply an update of the VOLVO 850 station wagon. That version was produced from 1998 to 2000. A sedan version named S70 was produced in paralell and it was also an update of the 850 sedan.

In 2001 the new V70 was launched on a new chassis. The V70XC was also lauched the same year and it was built on a separate chassis. Up to year 2000 the V70 and V70XC shared the same chassis inherited from the 850 wagon.

In 2001 Volvo also launched the new S60 sedan to replace the S70. An important fact to know is that the V70 really is the station wagon equivalent of the S60. Both models share the same drivetrain, engine, transmission, interior and most body panels. For marketing purposes Volvo decided to use a different name and a few minor cosmetic differences, like the front grille, to create a style gap between the S60 sedan and V70 wagon models. In fact they are the same car in sedan and station wagon versions.

The V70 is available in various models, from the basic the V70 model to the sporty R model. All models are front wheel drive or all wheel drive. The engines are in-line 5 cylinder with 2.5 or 2.3 liter displacement. The table below details the different models and engines available.

The V70XC was renamed XC70 in 2004. The XC stands for Cross Country. That model has higher ground clearance, four wheel drive, more plastic trims on the lower part of the body, load bars on the roof, in short it looks like an SUV. Note that the V70 (not XC) was also available with four wheel drive without the XC look. That model was named V70 AWD or V70 R AWD. We are mentioning it because some people may want four wheel drive but don't like the XC look.

In 2005 changes to the interior and exterior trims were performed. Chrome trims on the bumpers were added.

In 2008 a major update was performed on the V70. The taillights have a section on the tailgate door and are inspired by the Volvo C30 design. The engine is now 6 cylinders.

The V70 and XC70 are still in production at the time of this writing in 2008. Volvo sold about 3 times more V70 than XC70 (V70XC). Before the introduction of the XC90 in 2003, the V70 was the biggest seller of the Volvo line.