VOLVO unveiled its new V50 (pictured) at last week's Bologna motor show, pitching the compact premium estate against Audi, BMW and Mercedes-Benz.

Described by Volvo as a 'sportswagon', the V50 shares many of its styling cues and components with the new S40 saloon and will reach UK showrooms in the spring.

Three petrol engines (a 125bhp four-cylinder 1.8-litre, a 170bhp five-cylinder 2.4-litre and a 220bhp turbocharged five-cylinder 2.5-litre) and a four-cylinder common rail diesel have been announced so far, with four-wheel drive available on the T5.

On-the-road prices are expected to start at less than £17,500, with Volvo expecting to to sell 8,000 in a full year in the UK.

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