Volvo will introduce a new diesel engine baring the D5 badge later this year.
The twin-turbo 205PS 2.4 diesel engine will debut in the S80, giving the saloon a lower CO2 of 164g/km, down one benefit-in-kind place to 23%, and an improved fuel figure of 45.6mpg. In automatic gearbox form the fuel figure improves 8% to 42.2mpg.
The new D5 engine is also expected to appear in the all-new S60 due to be unveiled in concept form at the Detroit motor show next week, with the production version reaching the UK in 2010.