Volvo is downsizing its engines to meet the tough emissions' requirements demand in Europe, the United States and China.
The five and six-cylinder engines will be replaced with hyper-efficient three and four-cylinder versions up to 90kg lighter than their predecessors.
"Before the end of the decade all Volvo models will have engines with no more than four cylinders," R&D boss Peter Mertens said.
From 2013, the super-safe brand will start to bin its five and six-cylinder mills, including the five-cylinder diesel.
The next set of engines will be designated VEA (Volvo environmental architecture) and will be made up of 1500cc three-cylinder direct injection petrol and diesel engines, as well as a 2-litre four that Mertens says will outperform key engines in the existing range.
The first VEA engine will appear in 2013, most likely in an existing model, which will enable easy comparison between the old and new, as well as any competitors' claims of better fuel economy.
The F1-developed kinetic energy recovery system is also on Volvo's radar, with testing of a 60,000rpm flywheel that captures braking energy that can be used to either accelerate faster or cruise while saving gas.
"The flywheel system offers the driver an additional 80 horsepower while reducing fuel consumption by up to 20 per cent," Mertens said.