Recently acquired an instrument panel, the panel has an outdoor temp indicator in the bottom left corner.
While installing found the elec connector taped to the harness. I connected it to the temp indicator. The indicator shows the same temp 24-7. Ordered a temp sensor today from Volvo, does anyone know where the sensor is located. None of the books I have show it. The Owners manual says its near the wheel.

 

It is usually mounted in the front bumper. by one of the holes.
There might be a metal bracket mounted already.If so you will see the bracket with just a round hole.

 

Mine is located under the front bumper on the left side just behind the fog lamp. It is tethered to the a/c line. It hangs down at about 15 degrees. Black in color and about 4 inches in length. Elec. connection plugs in the rear.