They pivoted toward the american market. Volvo may still be a no-nonsense brand in Europe, but the ones they sell across the pond aren't going to be.
Americans don't want over engineered. They tend to fall into two categories -- we want as much creature comfort and bling as we can afford. And if we can't afford it, then give us the cheapest piece of **** that we will consider disposable, because our aim is to get to that lux car some day.
You don't pay extra for quality in America - just convenience, comfort, and style.
Volvo knows that. So they dress up their cars so they can continue to get that high margin, rather than strip it down and turn it into the next Yugo.