Volvo will replace diesel-powered V60 PHEV with gas-loving XC90

When it comes to its plug-in hybrid SUVs, Volvo is willing to sacrifice a bit of range to go a lot further, in the global sense. The Swedish automaker started producing a diesel plug-in hybrid version of the V60 late last year but doesn't plan to make that model available around the world. Instead, Volvo will replace it with a gasoline-drinking plug-in hybrid XC90 crossover, Australia's Drive.com says, citing Volvo executive Lex Kerssemakers. The new plug-in hybrid will use a gas-powered four-cylinder turbo as its engine and deliver at least 300 horsepower. Production of that SUV will start late next year.

Volvo says moving from diesel to gas will shave about five percent off the model's 120 miles per gallon equivalent fuel economy rating (per the more lenient European standards), so the SUV will still have fuel economy worth bragging about. Kerssemakers said that gas power, as opposed to diesel, would be an easier sell outside Europe. Volvo started making the diesel plug-in last November. The company said at the time that it initially planned to make 1,000 units for the 2013 model year but that advance orders caused them to boost that number to as many as 6,000 vehicles for the 2014 model year.