When production of Volvo's own in-house diesel engine started in 2001, the proportion of diesel engines in Volvo's European sales figures was just 20 percent (approximately).

In 2005, Volvo surpassed the 50 percent mark. The next step is to further boost the competitiveness with the introduction of a new five-cylinder turbodiesel engines.

Volvo Cars' five-cylinder diesel range now encompasses three engines with power outputs from 94 kW to 136 kW with peak torque between 300 Nm and 400 Nm.

Volvo Car Australia is, this month, introducing the D5 (136 kW, 400 Nm) five-cylinder engine in the XC90 D5. The all-new S80 D5 will follow in November.

Consistent increase
Highly effective and efficient particulate filters, one of the cornerstones in Volvo's new-generation engine upgrades, give the diesel engine additional environmental benefits.

The attributes of a modern diesel engine are not limited to low-rev torque and fuel efficiency. The D5 engine in the XC90 D5 will return on average 9.0 L/100 kms and cruise with quiet comfort. Diesel is no longer a dirty word nor is it a dirty fuel. Volvo claims the emissions of CO and HC from a modern diesel engine are as low or even lower than a modern petrol engine.

The XC90 D5 is equipped with a particulate filter which reduces tailpipe particulate matter by as much as 95 percent as compared with an older diesel engine without a particulate filter.

Diesel engine preference by Australian consumers is expect to increase at an accelerated rate. Most of this swing in growth will occur primarily in the sub-$45k passenger car segment and in the SUV segment. In the premium SUV segment, diesel models are presently in vogue.

Year to date, 37 percent of sales in the premium SUV segment are diesel models. This percentage of sales has been improving at a healthy rate in the short term - 26.5 percent in 2004, 29 percent in 2005 and 37 percent in 2006 (year to date).

Volvo Car Australia expects the XC90 D5 to quickly become the most popular model in the XC90 range.

80 percent in Europe
Diesel popularity is most prominent in the large-car segments, which includes premium SUV. In the premium segment for SUVs in Europe, diesel accounts for more than 80 percent of sales.

Improved power and torque
Volvo new-generation diesel engine has increased power and torque. The most powerful diesel variant - D5 - produces an additional 16 kW, with the peak output rising from 120 kW to 136 kW. Peak torque lifts to 400 Nm.

Accompanying the new D5 diesel engine in XC90 D5 is a six-speed automatic with Geartronic manual shift capability. This compact six-speed automatic also accompanies the 4.4-litre V8 in the XC90 V8.

Increased volumes
Production of Volvo's new generation turbodiesel engines started at Volvo Cars engine factory in Skovde, Sweden in mid-May 2005.

Volvo first-generation diesel engine reached a total manufacturing volume of 305,000 since the engine's introduction in June 2001.

Volvo is targeting a total product volume of its second-generation to double during the next four years and exceed 600,000 units.