Volvo's all-new 2.4-litre D5 diesel engine will be available in the UK in S60, S80 and the V70 estate from October with automatic versions arriving in early 2002.

Prices start at £20,750 for the S trim S60 with the SE priced at £22,950. S80 models will cost £22,340 and £24,240 and the V70 £23,960 and £25,960.

Although available in Europe in 130bhp and 163bhp form, only the 163bhp engine will be available in the UK initially to create “a wow factor”, according to Dean Shaw, product manager at VCUK.

“There has been a big increase in demand for diesels in the premium sector and we have been in need of a good engine to keep pace with the opposition, particularly in the V70,” he said.

Mr Shaw expects the S60 D5 to account for around 9% of the model's sales next year. S80 D5 is predicted to account for 14% while V70 D5 should account for 12%.

  • Volvo's new Sports Utility Vehicle, first seen in concept form earlier this year, will be available in the UK by the end of 2002 following launch at the Detroit and Geneva motor shows.