Yesterday in Gothenburg, Sweden, Volvo Car Corporation issued a serious challenge to the upper luxury segment in the shape of the all-new Volvo S80. The new S80 sedan, built on a new large car platform, combines stunning good looks, innovative design with world- leading safety standards and state-of-the-art technology.

For Australia, the S80 will come in two versions:

The Volvo S80 2.9 comes with a six-cylinder, 2.9 litre, normally-aspirated engine producing 150kW (204bhp) of power at 6000 rpm and 280Nm of torque at 4200 rpm. It combines power and smooth operation with outstanding engine efficiency.

The S80 T6, with a 2.8 litre engine offers extremely high performance , thanks to twin turbochargers. Output is 200 kW (272bhp) at 5400 rpm. Torque is 380 Nm at 2000-5000 rpm. The T6 delivers the performance of a V8 engine with a 0-100 kph time of seven seconds for the automatic.

The S80 has six new and exciting features, many of which are world firsts.

• The IC, Inflatable Curtain, protects the head and neck of front and rear passengers in side impacts. IC is the third stage of Volvo's Side Impact Protection System.

• The new WHIPS (Whiplash Protection System) provides greatly improved protection from potentially long-term neck injuries in rear-end collisions.

• To manage the host of functions, the S80 is equipped with a new, networked-based electrical system featuring industry-leading Multiplex technology.

• The S80 is the first car with the option of a fully-integrated GSM telephone with steering-wheel mounted controls and a handset in the armrest for front and rear passengers.

• S80 carries a formal Environmental Specification covering every phase of the car's life from production to operation to recycling, verified by Lloyds of London.

• Advanced theft protection measures include a remote or dash controlled system for illuminating the area around the car whilst approaching or leaving it.

• The in-line, six-cylinder engine is mounted transversely to provide an impact absorbing zone for better crash protection and to allow a more spacious passenger compartment.

For Australia, the S80 2.9 will be fitted with automatic transmission as standard. The S80 T6 will take the automatic with Geartronic function, offering a choice of automatic operation or clutchless manual gear-change. In the manual position, it is operated like a sequential gearbox as in a race car.

Other drive-train features include STC (Stability and Traction Control) and EBD (Electronic Braking Distribution). In 1999, DSTC (Dynamic Stability and Traction Control) will be available.

Engineering apart, the Volvo S80 is outstandingly stylish with a strong and distinctive presence.

"It has discrete elegance with an athletic quality", says Volvo chief designer, Peter Horbury.

"The rear end of the car adds to its strong identity with the sweeping lines of the sides giving way to a vertical rear with two rather dominant tail-lights.

"The interior is equally distinguished with that special Volvo touch that provides softness, calmness and space. All the controls are simple yet functional", says Horbury.

"The S80 is the biggest investment Volvo has ever made in a new model," said Mr Jan Eriksson, Managing Director of Volvo Car Australia.

"It is a very important new model for Volvo in Australia as it marks the beginning of an exciting new era for the company and the marque. We will be targeting current BMW 5-series and Mercedes E-class owners."

The Volvo S80 will make its Australian debut at the Sydney International Motor Show on October 15. Cars will be progressively delivered to dealers for sale from mid October.

The S80 2.9 is priced at $83,950 and the S80 T6 is priced at $94,950. Both the 2.9 and the T6 will be offered with SE packages at an additional $5,000. There will be no wagon version.