Volvo has revealed its new 2.0 liter GTDi (Gasoline Turbocharged Direct Injection) four-cylinder engine for the S80, V70 and XC60.

The engine has been equipped with a turbocharger, direct injection and twin variable camshafts to be able to offer a unique combination of low fuel consumption, low emissions and high performance across a wide rev range. It is also outfitted with the world’s first exhaust manifold and integrated turbine system made of sheet steel. While this sound pretty boring, Volvo says “The sheet (steel) is lighter and more compact and, above all, this system generates less heat owing to its extra insulating layer. This allows high gas flow temperature and thus more efficient combustion. ”

The engine is a collaboration between Borg-Warner and steel component manufacturer Benteler Automotive. The Volvo 2L GTDi engine produces 203 horsepower and 300 Nm. While Volvo declined to release full performance data, they stated a GTDi-equipped S80 would consume 8.3 liters of petrol per 100 kilometers (28 mpg).

According to Magnus Jonsson, head of Product Development at Volvo Cars, “We’ve succeeded in making a four-cylinder engine that is as powerful as a 2.5-litre five-cylinder unit, and it’s also much more energy-efficient. This is a very welcome both for those customers who want high performance as well as supreme driveability and for the environment that benefits from the improved fuel efficiency. One of the most important reasons behind the results is our new, patented turbo system that has been tailor-made for smaller energy-efficient engines.”

The Volvo 2.0liter GTDSi engine will initially be launched in South-East Asia, the Netherlands, China and Japan. It will be available with a six-speed manual or a six-speed double-clutch automatic transmission.