I don't think they (like most manufacturers) actually design any auto gearboxes - aren't they all bought in?
My 1993 850 with over 100k miles on it is every bit as smooth as a year old Honda Accord. Haven't Volvo had CVT in the past with the 300 series?
I've read about this. Very clever, I'm sure (although hardly new.) Personally I think they'd be better off returning to the type of quality components and build quality that went into their cars about ten years ago. The original A4 had major problems with suspension and brake components not even outlasting the warranty period and the interiors of their cars show horrible signs of wear and broken mechanisms after 20-30k miles of very light use.
Don't buy one then :-) I like mine.
Cheers,
AJ