There’s something about a Volvo that makes us feel safe. Maybe that’s because, in a way, Volvo almost patented safety when it introduced seat belts before any other car company. All of the features of safety and exciting Scandinavian design are part of the new Volvo S60. This is an upgraded car from the Volvo I drove last year and it comes with a better and thriftier 2.0-litre turbo-diesel engine.

Volvo has done a good job in matching the engine to the car’s size so that it delivers a lively performance, which includes a 7.4-second 0-100km/h acceleration figure. More importantly, the economy message, based on Volvo’s new e-Drive system, is about lowering running costs within the range. The system includes stop-start technology and energy recovery systems from the car’s front wheels.

Volvo claims that this improved engine uses world-first technology to ensure economy. By using pressure feedback from each fuel injector instead of using a traditional, single-pressure sensor in the common rail, Volvo claims that its i-ART engine technology makes it possible to continuously monitor and adapt fuel injection per combustion in each of the four cylinders.

For a car with a big engine, the S60 is economical on paper, but I didn’t achieve the expected figures. The company’s figures claim that a full 67.5-litre tank should take you over 1,800km, but that proved to be way off the mark as I returned a figure of just about half that across a range of road conditions. So, while the Volvo aspirations are good, reality is still a long way down the road.

This is a lively car to drive and maybe I was more encouraged by the pace than the opportunities for economy. How natural is that though, even for one who considers driving close to the 2,000rpm mark on the engine to be a virtue. The claimed economy level does bring benefits when it comes to the car’s official CO2 rating, which comes in at an impressive 99g/km and equates to an annual road tax cost of just €180.

Other running costs should be comparable with the likes of the Ford Mondeo and Volkswagen Passat. These are bigger cars than the Volvo S60, both in terms of length and wheelbase, even if the Passat is marginally lighter. They are both longer but not wider than the S60 and they beat the Swedish option in terms of boot space and towing ability.

There’s a feelgood factor when driving the Volvo S60 though – that nice, minimalist Swedish feel. The layout of the dash is very clear and the heater controls are easy to use. I found that the steering wheel adjustment gave good reach, but I would have preferred the wheel to be closer to the dash.

The seats are solid and there was good adjustment – maybe too much, as it took me longer than usual to get into a comfortable position. Once there, the driver comfort zone was restored and there is a lovely, soft feel to the steering wheel and indicator and wiper levers. The test car was an SE version with winter pack included, which adds over €600 to the price. The ABL light pack costs an extra €1,561, while the active TFT display and Sensus Connect high-performance kit cost €719, all adding up to an extra €3,000. That’s all on top of an already high entry price of €37,595.

When you compare it to the Ford and Volkswagen offers, this puts the S60 into a different price league and you have to ask: is it really worth it?

Volvo has brought modern styling to the S60, but it needs to be more price-competitive because it’s just not as spacious as the Ford Mondeo or Volkswagen Passat. Its economy claims are also difficult to achieve and it needs to confirm its safety credentials with an up-to-date Euro NCAP crash test.

Volvo S60 D4 2.0 diesel

Engine 2.0 litre

Engine power 181bhp

0-100km/hr 7.4 seconds

Economy 27km/litre

Fuel tank capacity 67.5litres

CO2 emissions 99g/km

Road tax band A2 (€180)

Main service 20,000km

Euro NCAP rating Four star (2001)

Towing rating 1,800kg

Warranty Three years Entry price €37,595

NI price £28,445