Volvo Car UK believes the new S60 will enable it to mount a challenge to the BMW 3 Series. Communications director John Lefley said: "The BMW is still the benchmark car worldwide but what Lexus has achieved with IS200 Volvo can achieve with this car.

The S60 saloon, making a debut at the Birmingham motor show, will cost from £19,995 when sales start on November 6. Dealers will have demonstrators by the end of the month.

According to Volvo, 57% of 3 Series sales in the UK last year were of the 318SE. "First-time premium sacrifice performance and some specification for the prestige of driving a German-badged car," said Mr Leffley.