By Nat Shirley
Tuesday, Jan 24th, 2012 @ 1:34 pm

Looking to increase the appeal of its mid-size sedan in northern climates, Volvo will add an all-wheel-drive T5 variant to its S60 lineup.

The news came from Volvo U.S. president John Maloney during an interview with Car and Driver at the Detroit auto show. The T5 AWD, which will use the same 250 horsepower turbocharged inline-five as the front-driver, will slot in between the existing FWD T5 and AWD T6 models and help bridge the $7150 price gap between them.

The T5 AWD should allow Volvo to better position the S60 against its rivals from Germany and Japan, almost all of which offer base-engine models with AWD. With the discontinuation of both the S40 and V50 in America, it will also give Volvo’s stateside operations a much-needed new model.

Look for the S60 T5 AWD to show up in dealers this summer, while pricing details will be revealed closer to that launch date.