Volvo Confirms Plans to Build VW Golf Rival

Now owned by Chinese group Geely, Volvo is continuously looking to expand its product lineup, and the first project that could receive the green light could be a Volkswagen Golf rival. To be produced in a five-door hatchback configuration, the new model is likely to show its face at the 2011 Frankfurt Auto Show, but only as a concept, while the production ready version is expected later next year.

Not much is known about such a vehicle, but Volvo Australia boss Alan Desselss confirmed for drive.com.au that the Swedish group is indeed looking to build a new small car, hinting that it could be a five-version of the C30.

“That [premium small-car] segment is growing,” he said. “We’ve seen the [BMW] 1-Series, Audi has the new A1 ... we’ve seen that market is expanding, especially in Europe. I don’t think [that demand] is as prolific in Australia yet, but I think it will come. The trend is moving towards smaller cars and then manufacturers [such as Volvo] will be challenged to give an S60 [mid-size luxury car] type of feel but in a smaller version. People don’t want to compromise just because they’re going smaller.”

Furthermore, Desselss confirmed that Volvo is also pondering a new crossover SUV to enter the product range below the XC60 and thus become a cheaper alternative to this particular model. A price tag of $40,000 in Australia would clearly make the vehicle a true alternative to already existing models.

“I think every manufacturer is looking at [the compact SUV segment],” he added. “You’d be crazy if you weren’t. The nomenclature [for the model] is not yet defined. There is a debate: should it be [XC]30 or [XC]40.”