The engine, wholly developed in Sweden, will join the four-cylinder Drive-E engines and is designed to support several different applications.

The engine is being developed primarily with the carmaker’s new Compact Modular Architecture (CMA) architecture in mind but will also provide power for its 60 Series cars, while also meeting Euro 7 emission targets.

‘The beauty of the new three-cylinder engine we are developing is that it can be built on the same production lines as our four-cylinder engine, offering flexible production potential which can be adapted to suit business needs as we grow. This marks an important step forward for Volvo Cars. In terms of our power and efficiency, Volvo’s engineering excellence will shine through with the Drive-E 3-cylinder engine,’ said Dr Peter Mertens, senior vice president, research & development at Volvo Car Group.

The new unit will join the line-up in 2017.