The refreshed Volvo S80 is being pitched into one of the toughest markets at the toughest of times.

The Swedish manufacturer has set its sights on prising premium saloon drivers from the German trio of Audi A6, BMW 5 series and Mercedes E Class - as well as Jaguar's highly-praised XF.

But it claims “small, significant improvements which make a big difference” will enable the Volvo S80 to do just that.

When Volvo began to turn its attention to a successor to the current S80 it asked owners and other premium saloon drivers what improvements it should make.

The exterior, interior, engine range and chassis, came the reply. And this provided the focus for the “small significant revisions” which the Swedish manufacturer claims combine to “make a big difference” to the refreshed 2009 Volvo S80.

The biggest of these revisions has been the introduction of three new diesel engines.

These are expected to account for 97 per cent of UK sales, and we flew out to Monte Carlo to put the model which is expected to account for nearly half of these, the D5, through its paces.

New D5 Engine

This new five-cylinder, twin-turbo 2.4-litre turbodiesel engine has been three years in the making and will follow the refreshed S80's summer launch by also joining the V70, XC60 and XC70 line-ups.

With the D5, Volvo has placed its faith in a package of performance combined with reduced CO2 emissions and improved fuel economy.

Its get-up-and-go comes partly from a powertrain which produces 205bhp, 310lb/ft of pulling power and delivers a 0-62mph time of 8 seconds. But is also down to two differently-sized turbos which operate in sequence to provide the appropriate response depending on the car's speed and revs.

The smaller turbo supplies rapid acceleration in lower rev ranges while the larger one delivers greater pulling power in higher rev ranges.

No turbo lag

This, claims Volvo, effectively removes turbo lag, and we certainly found this to be the case on our three-hour test, the engine providing a prompt response during motorway cruising as well as on more demanding two-lane roads.

Overtaking manoevres were completed with a smooth supply of power effectively delivered by the six-speed automatic gearbox, both at low and higher speeds.

This is impressively coupled with CO2 emissions of 164g/km and a claimed average return of 45.6mpg.

The 2.4-litre engine will also be available in more fuel efficient 175bhp guise, its reduced 155g/km CO2 also placing it in car tax band D.

Two chassis options

The initial diesel line-up will be completed later in the year by the Volvo S80 DRIVe model, to be powered by the 1.6-litre engine found in the C30, S40 and V50; though with an adjusted set-up to help return a projected 57.6mpg and 129g/km.

The other major decision for prospective S80 buyers will be in terms of the car's chassis. The top Executive trim level will come with a Comfort Chassis for a cushioned journey over uneven and rough surfaces.

However, this will be offered as a no-cost option to buyers who choose the SE or SE Lux trims with the new Lowered Dynamic Chassis fitted as standard. The default chassis delivers noticeably sharper steering and lowers the car by 20mm at the front and 15mm at the rear to reduce the height of the car's centre of gravity and give it a more planted feel on the road..

We had the opportunity both to drive and be chauffeured in the Comfort and Lowered Dynamic Chassis models and differences including adjusting the shock absorbers have created two markedly different driving and passenger experiences.

The Lowered Dynamic Chassis has also played a role in addressing  premium saloon buyers complaint that the outgoing model  “didn't stand out enough in the car park”.

Lower, wider, longer

Already lower, wider and longer than the outgoing model, the refreshed S80 looks sleeker than the model it replaces and the new grille with larger iron mark badge follows the design lead of the well-received XC60 crossover model.

Other new details include chrome finishing on the air intakes, lower part of the doors and under the tail lamps.

The cabin is more driver-focussed with updates including a new four-spoked steering wheel with a metal-effect finish carried through to the gear knob and starter button as well as aluminum dials.

The link to the XC60 is also reflected in the upgraded silk metal frame framed-floating centre stack and there is a feeling of greater quality in the cabin.

Pricing is yet to be announced but Volvo also indicated it would be delivering plenty of value for customers with the entry-level SE model getting 17-inch alloy wheels, aluminum trim and  cruise control with leather upholstery standard in SE Lux and Executive models.

Much improved

All this adds up to a car which certainly provides a much-improved offering to potential buyers over the outgoing S80.

Volvo may still have some way to go to persuade buyers of the premium saloon market's big guns that is has come far enough, but it has certainly given them more food for thought.

The new Volvo S80 will go on sale in the UK in the summer.

During his visit to Monaco Adrian sampled Prince Albert's car collection - read the Blog now

Search for used Volvo S80 cars for sale on Auto Trader