Volvo launches Drive-E powertrains in US with S60, V60 and XC60
The Swedish brand’s new Drive-E engine family arrives in US showrooms, promising improved fuel economy and performance in the S60, V60 and XC60 for 2015.
Volvo’s new Drive-E engine line-up has begun arriving in US showrooms, marking the start of a major transition for the brand’s American range. The 2015 S60 saloon, V60 estate and XC60 crossover are the first US-bound models to feature the new modular four-cylinder engines, which Volvo says will deliver improved fuel economy and performance compared to the outgoing five- and six-cylinder units.
The Drive-E family centres on 2.0-litre four-cylinder petrol and diesel engines, which replace the larger, less efficient powertrains previously offered. Volvo claims fuel consumption is reduced by 13 to 26 percent, depending on the model and specification. The new engines use direct injection, variable valve timing and are paired with an eight-speed automatic transmission as standard. Stop/Start technology is also included across the range.
Geely investment and production shift
This engine roll-out is part of a broader $11 billion investment programme funded by Volvo’s parent company Geely, aimed at renewing products and modernising manufacturing. The Skövde engine plant in Sweden received a $300 million upgrade to support production of the Drive-E units. The investment also covers new vehicle architectures and additional factories in China, including a plant in Chengdu.
Volvo’s move to its own powertrain technology marks the end of its reliance on Ford-developed engines, a legacy of the period when Ford owned the Swedish brand. Geely’s backing since 2010 has accelerated Volvo’s push for greater independence in engineering and product planning.
Technical features and future plans
The Drive-E range is designed to be adaptable for electrification. Volvo has already launched plug-in hybrid versions of the engine family in Europe and plans to expand hybrid offerings in the US. The company has suggested that future hybrid models, such as the next-generation XC90, could use a system where the rear axle is powered solely by an electric motor, providing all-wheel drive without a mechanical link between axles.
- 2.0-litre four-cylinder petrol and diesel engines
- Direct injection and variable valve timing
- Eight-speed automatic gearbox
- Stop/Start technology standard
- Plug-in hybrid compatibility
The S60, V60 and XC60 are the first to benefit from the Drive-E engines in the US, but the technology will be rolled out across Volvo’s global line-up as new models launch. The company’s product plan includes two new vehicle platforms, one for smaller cars and one for larger vehicles, both designed around the new powertrains and future electrified variants.


