1.6 liter diesel engine features 109 hp and 240 Nm of torque and can deliver an average fuel economy of 4.5 liters/100 km.

Volvo has done a little upgrading of its diesel offering for the V70 and S80 models with a new iteration of its 1.6 liter oil-burner power plant.

The 1.6 liter diesel engine, when coupled to a manual gearbox, can reach CO2 emission levels as low as 119g/km and a fuel consumption figure of around 4.5 liter/100 km. Volvo is seeking to reduce the emissions average of its entire fleet and with the addition of this new technology counts 5 models in its lineup that feature an emissions rating of less than 120g/km. These models are badged as DRIVe vehicles and also include the Volvo C30 (99g/km), Volvo S40 (104g/km) and Volvo V50 (104g/km).

Volvo has improved fuel efficiency on the engine through the use of "intelligent battery recharging," whereby the alternator only charges the battery when the engine is operating at a low capacity, such as going downhill. A second fuel-saving technology employed features friction reduction for the alternator and air conditioning compressor belts.

Power output on the V70 and S80 models with the 1.6 liter diesel and manual gearbox is 109 hp and 240 Nm of torque. Highway-driving economy for the engine is about 4.0 liters/100 km. In theory, that could drive a V70 or S80 for about 1750 km on a single tank of diesel fuel.