Like the previous Volvo 480 model, model 850 was the result of the implementation of a long -term project from Galaxy. The initial goal of this project was to think the creation of a new model range for the company that would be successful and brought the company a good profit. According to this development project, the assembly of 480 and 850 models was carried out at enterprises owned by VOLVO CAR and located in Gothenborg. Almost at the same time, the design structures of the company developed a model of a car of 400 episodes.