Volvo’s baby SUV, the XC60 will go on sale in the UK this summer with prices starting at ��24,750 ($48,700) for the 2.4D S with the 185Hp turbo diesel engine which is nearly ��5,000 ($9,800) cheaper than the rival BMW X2 2.0d 177Hp. The Volvo XC60 will be available in three trim levels in the UK: S, SE and SE Lux and will have the choice of three engines: the turbocharged T6 petrol uinit producing 285 Hp, and two variants of the D5 turbodiesel generating 185 and 163 Hp, respectively.

Swedish carmaker Volvo is expanding its flexfuel line-up with the introduction of S80 and V70 2.5FT, both of which are equipped with a 5-cylinder, 2.5-litre turbocharged Flexifuel engine delivering 200 hp and 300 Nm of torque. The Flexifuel cars can run on E85 bioethanol or 95-octane unleaded petrol - or any mix of these two fuels.

Volvo says that from a technological viewpoint, it would have been possible to reach a higher output, but that would have translated in higher fuel consumption. The EU combined figure for both the S80 and V70 2.5T is 9.2 l/100 km or 25.6 MPG with the manual gearbox and 10.2 l/100 km or 23.0 MPG (V70) and 10.1 l/100 km or 23.3 MPG (S80) with the automatic gearbox. No thanks to its lower energy content, fuel consumption when running on E85 is approx 30-40% higher than when running on petrol.

Swedish carmaker Volvo is recalling 102 MY 2008 XC90 and S80 vehicles equipped with V8 engines as these models may have been built with incorrect bolts to the engine mount. The aluminium bracket for the engine mount could break due to lack of adequate clamping force allowing the engine to come in contact with the sub-frame, resulting in a reduced engine torque or stalling of the engine without prior warning. Volvo’s dealers will inspect the engine mount bolts for specific markings. If any of the bolts contain the incorrect markings, the bracket and bolts will be replaced free of cost.

Ford Motor Company’s Volvo Cars unit is planning to cut 2,000 jobs as part of a cost reduction programme which is estimated to reduce the total cost level by 4 billion SEK (approx. $700 million USD). The Swedish company said that it will lay off 1,400 white collar (consultants included) and 600 blue collar workers.

Volvo has announced the winner of its “Design your own C30” contest in Sweden which attracted nearly 6,000 participants. The winner is 23-year-old Marie Karlsson, engineer from Vetlanda who will receive a Volvo C30 1.8F in the “dream pattern” Weeds. The contest was created to promote the launch of Volvo’s personalized adhesive films for the C30. The adhesive films that come in a variety of designs are offered exclusively in Sweden and Finland. However, Volvo stated that many markets have shown interest including Japan, Canada, Malaysia, Thailand, Romania, England, Denmark, France and Switzerland.

Volvo MY 2008-2009 S40, V50, C30, C70 vehicles are being recalled in the U.S. because of a faulty power steering house that may rupture. If this happens, it could lead to a rapid drainage of the power steering fluid in the system and a complete loss of power assistance, something that could increase the risk of a crash. Volvo dealers will inspect and replace the steering return line hose assembly free of charge. For more information, owners can contact Volvo at 1-800-458-1552.

Even though the official presentation of the new economical sub-120g/km diesel variants of the C30 hatch, S40 Sedan and V50 SportWagon called “DRIVe” is scheduled for the Paris motorshow at the end of the week, Volvo UK today announced preliminary prices for all three models. The new DRIVe range will start at £15,410 OTR for the C30 and £17,260 and £18,660 for the S40 and V50 respectively. Production of the new DRIVe models that are equipped with a special set of efficiency-enhancing features will start in mid-November with first UK customer deliveries in January 2.

Ford-owned Volvo Cars said on Wednesday that due to the rapidly deteriorating market situation in the global car industry, it will have to cut around 2,000 blue collar and 700 white collar jobs in Sweden. An additional 600 jobs as well as some 700 contracts with consultants will be terminated outside Sweden. Combined with earlier announced job cuts, the total layoffs now planned to be initiated account for 6,000 people worldwide from Volvo Cars’ 25,000-strong workforce.

Today Volvo announced that it will give us our first taste of the next generation S60 saloon at the Detroit international motor show in January 2009 with the unveiling of the S60 Concept car. Although no exterior photos were issued, the Swedish automaker did release a 3D impression of the concept car’s cabin that features a 1.6-meter (5.2 feet) long floating crystal center stack. The latter has been developed in cooperation with world-famous Swedish glassworks Orrefors.

Dedicated Volvo tuner Heico Sportiv has turned its attention on the new XC60 with the unveiling of new upgrades for the compact crossover. The German-based firm’s exterior package is restrained to the body colored bumpers and the addition of a front lip spoiler and a rear skirt that incorporates a new set of tailpipes. Also available for the XC60 are custom alloy wheels in different styles and sizes and a sport suspension kit that that brings the crossover 30mm closer to the ground.