The full DRIVE-E engine range, dubbed Volvo Engine Architecture (VEA) during the development phase, will comprise diesels ranging from 118 to 227bhp. Using different levels of turbocharging, petrol versions will start at 138bhp and go all the way up to 300-plus bhp, replacing eight existing engine families across the Volvo line-up.

All of the new engines are modular, based on a 500cc per cylinder design and sharing key components such as fuel injection systems. Volvo said during development this could reduce unique parts by 60%, as well as making technology such as electrification easier and allowing for three-cylinder units in the future.

‘Our four-cylinder engines will offer higher performance than today's six-cylinder units and lower fuel consumption than the current four-cylinder generation’ said Derek Crabb, vice president powertrain engineering at Volvo Cars.

He added: ‘If you take a four-cylinder DRIVE-E engine versus any six-cylinder engine, there's a massive weight and size reduction for the same power. Fuel economy savings are anything from 10 to 30%, depending on which engine you're comparing it to.’

The initial unit line-up includes the D4 179bhp diesel featuring i-Art technology, which will be offered first on the new S60, V60 and XC60 FWD.

This technology uses pressure feedback from each fuel injector instead of using a traditional single pressure sensor in the common rail, making it possible to continuously monitor and adapt fuel injection per combustion in each of the four cylinders. In addition rail pressure is increased to 2,500 bar. The result is improved performance, fuel economy and noise.

In addition, the S60 and V60 will also be joined by a new T6 engine, with 302bhp. Both engines will be available with a new eight-speed automatic gearbox. A 230bhp T5 unit is also being launched.