New Volvo S80 early 2007

Sales of the S80 had been declining sharply over the past couple of years from a peak of 364 in 1999 - the first full year of sales - to a paltry 44 last year before the decision was made to hold the car back until the new model was available.

Volvo Australia’s Todd Hallenbeck says the ability to launch the revised S80 with a proven V8 and a well-sorted six-speed automatic gives the car a new relevance to Australian buyers.

"We are not expecting to sell huge numbers but around 500 a year is a nice target. At $95,950 for the V8 it sits well against other luxury V8 sedans and we believe it will attract a good degree of interest."

The transverse alloy 4.4-litre V8 in the new S80 is the same 232kW and 440Nm Yamaha unit used successfully in the XC90. For the V8 model, AWD will come standard. Also available will be Volvo's well-tested 2.4-litre five-cylinder TDi with 136kW and 400Nm priced at a sharp $71,960 and expected to account for a majority of sales after an initial rush for the V8.

The new S80 looks much tauter than its predecessor with a more integrated roof profile, larger wheel arches filled by larger 19-inch wheels and the general impression of being a more compact car despite actually growing slightly.

And while the new car looks similar to the original, Volvo can genuinely claim that it is an all-new model sitting on a brand-new platform cobbled together from the best of the C1 componentry (that's S40, V50, S60 and C70 - along with a little bit of Ford Focus and Mazda3) and Ford's new global mid-sized architecture.

The luxury status of the S80 has been polished by the inclusion of some fairly sophisticated electronic wizardry in the Four-C chassis active damping technology - standard fare on the V8 for Australia.

The comfort setting is likely to be a little soft for most Australian applications with sport the favourite for day-to-day running.

A further tightening of the parameters is available with the advanced option which will tie-down body-roll and sharpen damper response to a degree that outstrips the S80's slightly disappointing steering.

In keeping with its logical competition - Audi's A6, the BMW 5 Series and Mercedes E-Class - Volvo has worked in a variety of electronic extras, most of which will be options.

There is a radar-based active cruise control that produces audible and visual warnings of a possible collision and works with brake assist when the driver takes evasive action; BLIS, a blind-spot warning system using tiny cameras built into the side mirrors; and PCC, an electronic key fob that can monitor the cars locking and alarm status and even detect the heartbeat of an intruder inside the car.