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Volvo Wants To Build The Affordable Car Of Your Dreams

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If it gets the green light, it will slot below the XC40.

Right now, Volvo's smallest model you can buy is the superb XC40 subcompact SUV, but the Swedish automaker could introduce an even smaller model later down the line as more premium manufacturers continue to enter the compact segment. Volvo has previously refused to even consider building a car smaller than the XC40 to rival the Mini, but CEO Hakan Samuelsson has admitted such a car is no longer being ruled out due to changing market trends.

"We took one step down with the XC40, which is our smallest SUV. We have a very strong lineup of SUVs. So, never say never", he told AutoExpress. "There is a trend now that premiumness is more and more decoupled from size. Small cars can also be premium. Just because you have a small suit, it doesn't have to be polyester. So, let's see. Right now, it's not planned, but it's a good idea also."

If Volvo's sub-40-series car gets the green light for production, it will likely launch as an affordable hatchback and sedan and would be built on Volvo's most compact platform, the Compact Modular Architecture. There's also a good chance it will have an all-electric powertrain since Volvo wants fully electric cars to make up half its sales in the future. Incidentally, Volvo's first fully electric model will be an EV version of the XC40 due to go on sale after the Polestar 2 later this year.

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Volvo is also considering offering a charging infrastructure or an allowance of electricity as part of its Care by Volvo subscription model. "That could very well happen," he said. "It's an interesting idea because in some way when somebody has an electric car they need a good concept on how to charge them."

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