(Mon 01 Feb 10)

Volvo has announced that it has developed new 1.6 turbo diesel DRIVe versions of the V70 estate and S80 saloon. These cars are already available in DRIVe form, of course, and official emit CO2 at the rate of 129g/km, but the new ones bring this figure down to 119g/km and raise the combined fuel economy figure to 62.8mpg.

This has been made possible in two ways. First, Volvo has fitted a lower-friction belt to drive the alternator and air-conditioning compressor; and second, the alternator now charges the battery only when the engine is under low load, such as when the car is being driven downhill.

The result improvement in economy and CO2 emissions means that the new cars will cost just £35 to tax each year - or, from April, £30, with no extra first-year tax to pay. Volvo also estimates that the improved economy should make it possible to drive either model 1100 between refills.

A UK on-sale date has not yet been confirmed, but prices will be announced in early March, and it's expected that the cars will become available not long after that.

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