Volvo Cars has started European delivery of S40 sedans and V50 estates with its new and more powerful D5 diesel powerplant, aiming at Europe's premium diesel car market.

The S40 D5 and V50 D5 debuted at the Bologna Motor Show in December with the new 180 hp five-cylinder turbodiesel, a considerable step up from the two four-cylinder alternatives offering 109 and 136 hp. Currently, the D5 engine is available only with a five-speed automatic. The new models are expected to account for about 10 percent of S40 and V50 sales in Europe.

Volvo plans to roll out a C70 D5 model later this year, and the annual production target for the three D5 models is about 10,000 units.

[Sources: Volvo via What Car?]