As reported by us last year, Volvo is readying a new small SUV which is likely to be called the XC40.  This new SUV will be the third offering in Volvo’s global SUV line-up. The new Volvo XC40 will take on the fight against the Audi Q3 and Mercedes-Benz GLA small SUVs.

This SUV will be based on Volvo’s new modular CMA platform which is co-developed by Volvo and Geeley. It will also share its underpinnings with a similar offering from Geeley (codenamed NL-4). To be manufactured in China initially, the new SUV will share factory space with its Geeley equivalent.

According to this website, the new Volvo XC40 will be one of the first models to come with the firm’s new 1.5-litre three-cylinder turbo petrol Drive-E engine. This engine is being built to be used in Volvos employing CMA, and also the larger S60 and V60 models which are based on the SPA. It can function with both manual and automatic transmissions, and also be mated to four-wheel-drive and hybrid systems. The three-pot can be tuned to varying power outputs up to 180bhp. This new motor for the XC40 will be manufactured in-house at the same plant.

Furthermore, Volvo is likely to develop a new sedan and more variants on this platform. The carmaker is currently testing its S80 flagship sedan's replacement, the S90, on international roads. This long-awaited sedan is expected to make its official appearance next year. 

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