This funky looking thing above just so happens to be one of those cameras.
It not only distinguishes between different cars, it can visually triangulate objects' relative positioning using this fancy trifocal camera, which simultaneously views the world in swaths of 140, 45, and 34 degrees.
This is in addition to a joint camera/radar unit that the company just rolled out on the XC90. A unit that reads not only traffic signs, but the curvature of the road.
While current blind spot monitoring systems tend to struggle with things like lane-splitting motorcycles, Volvo's new system adds a pair of long-range radars help detect fast-closing objects at a much greater range. Meaning—in theory— if you're closing quickly on a bike, the system won't cut you off.