They've gone all out to create a new generation of four cylinder engines that are smaller, more powerful and more efficient than their current power plants - reflecting the trend amongst manufacturers to downsize engines and use turbos to keep the performance up.
Volvo call this new line VEA, or Volvo Engine Architecture. All the engines are made at a factory in Skövde, Sweden where they've invested £98 million in upgrades.
The plant will churn out a mix of diesel and petrol engines which will initially be destined for the S60, V60, XC60, V70, XC70 and S80. The first fruits of Volvo's labours will be seen in Autumn 2013 with the last ones coming on line in 2015.
Here's a video they've produced about the engine plant. It's quite dry but appealing to us petrolheads with a nerdy interest in how bits of cars are made.
