The 240 series Volvo (and the 740 series which was basically the 240 with different sheet metal) certainly was a solid car, but there's a pretty big engineering disconnect between it and more current models.
From news accounts over the past ten years it seems that Volvo has been groping for a market niche and making cars from a position of weakness instead of a position of strength. I believe they have used both Renault and Mitsubishi engineers and designers and now of course Ford owns them.
Mercedes on the other hand has grown and solidified it's position.
Something to consider anyway.