The new 1.6liter will firstly be available in the new S60 sedan and V60 station wagon variants. The 1.6liter GTDi which will be fitted in the S/V60 T3 version will have 150bhp/240Nm and the T4 version with a 180bhp/240Nm. The T4 variant will have a ECU controlled overboost feature that will increase torque to 270Nm which is available on demand – I.e full throttle applications like overtaking or spirited driving. This new petrol engine will also be available in the E85 Ethanol sipping versions. By the way, for you readers' reference, the S/V60 T6 is a turbocharged 3.0liter V6 and the T5, a 2.0liter turbocharged 5 cylinder engine.
Notice that direct injection technology and turbocharging have basically made a 1.6liter engine make as much horsepower as a normally aspirated 2.0liter engine and the torque levels close to a 2.0liter turbocharged car from the early 2000s. And this is a factory specced engine, not some tuner special. According to Volvo, the engine also feels like it provides the same sort of pulling power of a modern (which means very torquey) diesel engine.
Upon launch, the European 1.6GTDi T3 variant will only get a 6 speed manual gearbox while the 1.6GTDi T4 will get Volvo's 6 speed Powershift automatic gearbox or a 6 speed manual as transmission options.
Both variants will feature a DRIVe button that can engage and disengage built in fuel saving technology. The automatic transmission variant will have a function that will disengage the gearbox if the driver releases the accelerator pedal when the car is rolling (like on a downhill gradient). This will create less rolling resistance or less transmission drag and will ever so slightly reduce fuel consumption. The manual variant will have a Start/Stop function when the car is stationary and when the driver shifts the gear into neutral. The engine will automatically kick in when the driver engages the clutch.
In other words, you get all the luxury of a big car, the power of a 2.0liter engine, the road tax and fuel consumption of a 1.6liter in one car. Talk about savings, from a certain point of view that is. Buying a Volvo is still buying a premium priced car these days.