All-new Volvo XC40 to take on the Mercedes GLA

Volvo’s R&D boss, Henrik Green, has confirmed that the company’s crucial new XC40 will be launched internationally later this year as the first model in an all-new 40-series family. The new compact SUV, which will rival the BMW X1, Audi Q3 and Mercedes GLA, was previewed last year by the Concept 40.1, along with another potential 40-series model, the Concept 40.2 saloon.

Speaking to our sister publication, Autocar UK, at the Detroit motor show, Green said the XC40 will be the first model to use Volvo’s modular CMA architecture and the base development work of the car has been completed.

“There’s a big chance it’ll be one of the most successful cars in our line-up,” he said.

Test mules of the XC40 spied on international roads retain the concept’s angled tailgate and butch nose design, suggesting the small SUV will adopt the concept’s other features as well, including new light designs for both the front and rear. It is also expected to sport an unconventional window line which will likely resemble the angled one that was seen on the concept.

The SUV will also introduce a new modular 1.5-litre three-cylinder engine which is derived from Volvo’s existing four-cylinder 2.0-litre diesel and petrol units. The engines will come in both diesel and petrol variants, with and without turbocharging.

Top of the XC40 range will be a petrol-powered plug-in hybrid (PHEV) called the T5 Twin Engine. This comprises a 182hp petrol version of the new three-cylinder engine, supported by a 75hp electric motor.

The front-wheel-drive hybrid will have a seven-speed dual-clutch automatic gearbox which will also receive direct input from the electric motor. The hybrid will be capable of driving up to 48km in full-electric mode.

A V40 replacement will also be spun off of the CMA platform, which Volvo has co-developed with Geely, its Chinese parent firm. Geely plans to use it to underpin a range of models from its new Lynk & Co brand.

This year will also mark the launch of the second-generation XC60 SUV, with replacements for the S60 saloon and V60 estate set to follow soon after. Volvo will then turn its attention to the launch of its first all-electric model in 2019.

“We believe strongly in electrification,” Green said. “We are working very hard on our first full EV. In 2019 it will be on the road. This is not a one-off. It will be followed up by more products. I see EVs as a significant part of our portfolio, a wide range.”

Despite the predicted rise in EVs and growing pressure on diesel, Green said Volvo is continuing to develop diesel engines.

“How long [diesel has left] is very difficult to say,” he said. “I believe electrification will start to come and there will still be a place for diesel next to it. Then you argue on the switch. Right now, we’re developing diesels. For how long is one of the questions to focus on.”

The XC40 will give Volvo a third SUV in its line-up, but Green isn’t ruling out more in the future: “To me, yes, three SUVs is a very good base,” he added. “It’s an interesting body style.”

“It’s interesting what you can do with SUVs. They started as off-roaders, then moved to the city. What they gave customers was good ingress and egress, a good overview of traffic and a feeling of being in command. These are all attributes we could give to customers in lots of different shapes and bodies, not necessarily traditional ones,” he said