Report: Small Volvo Crossover in the Works

Volvo Car Co. plans to launch a compact crossover vehicle in about two years, Automotive News Europe reports. Citing unnamed company sources, the newspaper says the new model will be called the XC40 and ride on Volvo’s compact modular architecture (CMA) that also will carry the V40 and the V40 Cross Country hatchbacks.

Volvo is co-developing the CMA platform with Geely Automobile, which also is owned by China’s Zhejiang Geely Holding Group Ltd., ANE says. Other reports suggest the new crossover will be launched in China, then migrate to Europe and sometime later to the U.S.

The company indicated previously that it plans to expand its compact vehicle lineup with the CMA platform, and that a new crossover was a key priority for the future. Volvo is investing €200 million ($228 million) at its Ghent, Belgium, facility to build CMA-based models.

Volvo also will produce such vehicles in Chengdu, China. The new compact lineup will include plug-in hybrid versions and add autonomous driving functionality by 2020, according to the carmaker.