Volvo has very clear its strategy of models. The Swedish brand commitment to be a global manufacturer and that all its models are also. That seems to be one of the reasons that there is following the decision of Volvo does not create more access models. Volvo S40 and XC40futures, already anticipated with two prototypes, are the smaller models of the Swedish firm. Will not go to utilities or SUVs smaller.
Volvo would have capacity to do this with the new platform modular CMA, but prefer to focus on a range that can be competitive in all global markets. In addition, open new niches for the brand could be difficult in a market in which there are many models established and well accommodated, putting at risk the viability of those projects.
This means that either there will be a replacement for the Volvo C30, successor of the legendary Volvo 480, a model that already left him clear from Volvo that some land may be a little hostile. This CD was sold between 2005 and 2011, selling around 200,000 units globally in a market that, in Europe, is the most important, in the compact segment C.
With this decision, Volvo stands out from the rest of premium manufacturers, such as Mercedes or especially Audi, in his eagerness to open new niches premium in smaller segments. In the case of smaller brands such as Volvo, those niches of small cars are even more difficult profitable since much smaller and cheap is a car, less is its commercial bank.
Source – Car & Driver