Crossovers are the hottest segment today in not only the US, but also in Europe. Some sedans, such as the Buick Verano, will not survive the takeover. For its part, Volvo is currently putting the finishing touches on its upcoming new baby CUV, the XC40. Slotted below the XC60 and XC90 in the lineup, the XC40, caught testing recently by our spy photographers, will be built on the Swedish brand's all-new Compact Modular Architecture (CMA) that's been designed and engineered specifically for small cars.

The upcoming S40 sedan and V40 hatchback will also ride on this platform. XC40 power is expected to come from a range of engines, including what Volvo calls twin-engine plug-in hybrid technology. More than likely that'll be an extra and more expensive option. However, still expect to see a 1.5-liter turbocharged three-cylinder gasoline engine along with a four-cylinder diesel. Despite a likely Shanghai Motor Show reveal this coming April, the Volvo test engineers in these photos still made an attempt to stand around the prototype in order to prevent our photographer from snapping a few. Fortunately, our guy's good and braved the cold Swedish winter; these are the best images we've seen yet of Volvo's latest.

As far as the XC40's competitors go, the main targets are the BMW X1, Audi Q3, and the Lexus NX. But based on what we've experienced with the XC60 and XC90, the new XC40 will more than likely be a success.