Thats right. As well as having a turbo, the turbo air is passed through an intercooler in front of the radiator before going into the intake. The cooler intake air allows more boost pressure and fuel to be applied by the IP and provides about 20 HP more. Without the intercooler, there is a risk of overheating the pistons etc.
Later model 740 and 940 Volvo diesels had this setup in some European countries.
Italy and UK I know for sure. Probably Spain and Portugal too.
Steve
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