I would imagine that out of all the Euro-Volvos the 360 flower mower would be best suited for rallying being smaller & having the ability to just drop your B230-whatever in.
Well it seems that many here in the US think the same, and generally they are folks who have never driven down a gravel road at 80 to 110mph.
See with speed comes the need for the car to have some stability, and there are some countries that have roads which allow fairly high average speeds: Sweden, Finland, USA and Canada.
A lot is how the places developed their wildernesses, when roads were built, land ownership and what grows on the land, and of course natural forces like how glaciated it was during the last ice-age.
Whatever the reasons, the roads in those places are more flowing and therefore faster than some places such as the UK, Ireland, French Alps and Alpes Maritime, Italian Alpes where the roads grew out of old footpaths or goat paths that had been around for centuries.
There's a range for the cars wheelbase which seem to work really well at the speeds people do on fast stages and that range in modern years seems to fall between 97.5" and about 104".
Sure there are cars that fall outside that range, and the coolest car in all human civilisation, the Ford MkI and MkII rwd Escort are only 94.5"---but they were best and are still fantastic on tight, twisty, narrow stages asphalt or gravel.
But when average newbies who have 1-2 60 mile events do 55-or so mph average on stages, and are often above that on the straights there is NO ADVANTAGE to a shorter, and naturally therefore twitchier car.
Indeed there is an advantage to a car that's more stable.
If it reacts a bit slower to violent forces, it "signals" the driver and gives him time to notice and maybe correct or catch it before it gets too out of shape.
It is in short EASIER to drive a car with a wheelbase between say 100"-104" AND STILL HAVE IT BE NIMBLE.
Look at the record for
Ford Sierra Cosworth (102.7" wheelbase)
Misterbitchi Gaylant (102~~is)
Sub-a-rat Le-gassy (102.5~~ish)
And you'll see that did just fine on gravel.
And it was to make them easier to drive ON ASHALT, before there were too many computers controlling the stiffness of the front, center and rear differentials that cars were made shorter such as the
Sub-a-rat Imptetzled (98.sumpin-ish)
Misterbitchi Lancer EVO (98"~~ish)
Ford Escort Cosworth (100.5")
As for the 360 or 340, they did enjoy faily good success in short closed circuit real RALLYCROSS events but there the speeds are low (under 70mph) and the curves and corner tight, so the shortness is an advantage.
Remember, racers with any brains do things for a reason so if there's an advantage in a 240 relative to the disadvantages of the 747 K-car or the 360 thing, then a half alert driver would do what works with him the best
for what he's doing