New D3 engine will be available in 150, 163 and 177 hp iterations. Fuel economy ratings have been shrunk to between 5.1 and 5.9 liters/100 km.

Volvo will be extending the availability of its new 2.0 liter, 5-cylinder diesel engine, first seen in the S60, to its entire range.

The new D3 engine will now be made available in the Volvo S80, V70, XC70 and XC60 models. In that iteration, it comes with 163 hp (122 kW) and 400 Nm of torque. But those models can still be had with the 2.4 liter D5 diesel engine which produces 205 hp (153 kW) and 420 Nm of torque.

For the Volvo C30, S40, V50 and C70 models, the new 2.0 liter diesel comes designated as a D3 with 150 hp (112 kW) and 350 Nm of torque. A D4 variant of the same power plant is also available with 177 hp (132 kW) and 400 Nm.

Volvo developed this latest 2.0 liter diesel by downsizing its 2.4 liter, 5-cylinder diesel power plant - shortening the stroke to improve fuel economy. It comes coupled to either a 6-speed manual or 6-speed automatic transmission. Fuel economy ratings, depending on horsepower variant and vehicle model, run between 5.1 and 5.9 liters/100 km. CO2 emssions range from 134 to 154 g/km.

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