The Swedish manufacturer reports that the affected vehicles may experience a coolant fluid leak during engine warm-up in certain driving and climate conditions - such as hard acceleration after a cold start in a cold climate.
Volvo says a warning message will appear in the driver's display, and the fault could also potentially cause oil seepage.
Above: Volvo V60, Top: Volvo S60
If an oil leak occurs, it could cause a smell and/or smoke to come from the engine bay, and in a worst-case scenario has the potential to start a fire.
Vehicle Identification Numbers (VINs) for the affected models are as follows:
S60 - 001139 to 369491
V60 - 001085 to 272166
Owners of the recalled vehicles will be contacted by Volvo Australia via mail and are encouraged to contact their local dealer.
For more information, customers can contact Volvo Australia on (02) 9020 1600.