According to reports, Volvo is planning to launch a compact SUV, called XC40, based on a bespoke platform known as the SPA (Scaleable Platform Architecture) in about the next five years.
The first product that will be rolled off the new platform is reportedly going to be the replacement for the XC90 next year. The smallest model based on the platform will be the next-generation S60.
Volvo insiders say an XC40 would "fit the brand and sell in numbers". In recent times, the company’s best-selling models have been the XC90 andXC60. With downsizing trends across the world, and the success of models such as the Audi Q3 and Range Rover Evoque, the absence of an XC40 is a significant gap in Volvo’s line-up.
More details have also emerged about the engineering behind the SPA. It is constructed in five sections, with the section roughly between the centre of the front wheels and the A-pillars — which carries the engine and transmission — being the same size on all models underpinned by the platform.
Volvo sources confirmed that the SPA will be able to accommodate both mechanical four-wheel drive and electrically driven rear axles for hybrid versions. The SPA will only take Volvo’s all-new four-cylinder engines.