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Volvo is working to revamp its new executive sector S80 D5 diesel engine in the hope it could scrape under April's crucial new capital allowance threshold of 161g/km.
The firm's new range-topping 2.5-litre diesel will be handicapped in the corporate marketplace as it just falls into the lower writing down allowance band at 164g/km, but power train director Mats Fredrikson said the firm could look to get the engine re-tested in the coming months to drop below the important milestone.
At the moment, S80 sales are up to 80% corporate and the D5 is the most popular engine, but Volvo UK large car product manager Chris Wailes told BusinessCar the balance may shift towards the lower-powered 2.4 diesel if writing down allowances begin to impact upon car choice.
"The ideal scenario was for the new engine to be below 160," said Wailes. "The corporate customer will potentially go for the 2.4"
Wailes said the new D5 is unlikely to be reclassified in the coming months.
"I am continuing to push for it to be sub-160 and I'll keep going, but I can't see it happening in the short-term," he said. "I can't say it will never happen but I can't see it happening in the next few months."
Wailes said the spec improvements on the new model year S80, due this summer, and changes to the pricing structure, should see it become more appealing to drivers traditionally opting for prestige German brands.
"We've got an alternative choice to the Audi A6 and BMW 5-series where you don't have to spend as much on the car and it's better equipped," he said. "It's a great package for not a lot of money."
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