For the 1988 model year, the 760 received numerous updates. From the outside, the most noticeable of the over 2000 changes were the revised front sheet metal, including an aluminium hood, recessed windscreen wipers, and new aerodynamic headlights. Inside, all 760s received a revised dashboard which was angled towards the driver, 3-position tilt steering, and a new stereo system. The top versions (standard in the US) were equipped with a new electronic climate control (ECC). Underneath, saloons received the same multi-link independent rear suspension which was also introduced on the 780. The new 4-link rear axle also required a new fuel tank, which was in the form of a saddle, sitting atop the driveshaft. The volume of the tank shrunk by 2 liters, to . Along with the revised dash, the interior saw the addition of a revised dome light and many fabric accent pieces. The 760 Estate received the same changes, except it continued to use the live rear axle. This was due to the weight increase: the new rear suspension weighed about more than the old one, and Volvo determined that the loss of payload would not be worth the comfort improvements.