Volvo has launched a new front-wheel-drive diesel version of the XC60; a model that uses Volvo’s 2.0-litre D4 diesel engine and eight-speed automatic gearbox, while offering fleet customers lower benefit-in-kind tax.

With the drivetrain only powering the front wheels, the XC60 emits 129g/km of CO2 and can return 42.2 – 47.9mpg. P11d values start from £38,450, so company car tax will cost from £211 (20% taxpayer) per month on the entry-level Momentum trim. The new powertrain is also offered in R-Design (£40,750) and Inscription (£42,700) trims.

All-wheel-drive remains available with the new B4 mild-hybrid diesel, priced from £40,150, which emits from 139g/km of CO2. The D5 diesel has also been replaced by an all-wheel-drive mild hybrid B5 diesel with 235PS and CO2 emissions from 139g/km. Prices start at £45,400 in R Design trim.

“This is a really exciting addition to our premium mid-sized SUV range. The XC60 has enjoyed strong demand since it was launched, and the new D4 FWD variant makes it all the more desirable. People who want to cut their tax and fuel costs, and reduce their impact on the environment, without compromising on style, quality, practicality and comfort, will enjoy everything the XC60 D4 FWD has to offer,” commented Steve Beattie, Head of Business Sales at Volvo Car UK.