New diesel for S40 and V50

• 178bhp 2.4-litre diesel fitted to S40 and V50
• Priced from £23,205 and £24,565 respectively
• Auto box standard, six-speed manual due 2007

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Volvo's 2.4 D5 diesel engine is now available in its S40 saloon and V50 estate.

The 178bhp five-cylinder unit costs from £23,205 in the S40 and £24,565 in the estate.

In both cars, the diesel will be linked to Volvos' Geartronic automatic gearbox, but a six-speed manual will be available by the middle of next year.

Both cars manage a combined fuel economy of 40.4mpg, and each will have carbon dioxide emissions of 184g/km, which will put them into 26% company car tax band.