VOLVO's first ever four-wheel drive car - the 850 AWD - joins the range this month with a price of £27,800 on the road. The company says the car will appeal to the driver who wants the capability but doesn't want the size, weight or height of a conventional off-roader.

The new car will compete against established rivals such as the Subaru Legacy and Audi A6 quattro. The Volvo drive system is permanent 4x4 but in normal use 95% of the power will go to the front wheels. In tricky situations, power is transferred automatically to the wheels with the most grip.

The power is provided by a new 193 bhp 2.5 litre 20 valve light pressure turbo engine offering a 0-62 mph time of 8.5 seconds and a top speed of 137 mph. Available in one specification level the car features front foglamps, 16 inch alloy wheels, roof rails and an increased ride height of 14 mm. Suspension is self levelling and the car also has traction control, air conditioning, load net, roof rails, trip computer, leather steering wheel and metallic paint. Volvo plans to sell just 200 of the cars this year.