Given the strong sales of crossovers, Volvo is expected to roll out a new XC40 compact luxury SUV/crossover by late 2017 or early 2018 to take on the likes of the Audi Q3, BMW X1 and Mercedes-Benz GLA.
A test mule spotted in Sweden, displayed a raised V40 Cross Country body, and is speculated to be underpinned by Volvo’s new Compact Modular Architecture (CMA) platform. The production model though, is expected to borrow styling cues from the new XC90 SUV, as well as the upcoming S90 and V90 models.
The XC40 will most likely be powered by Volvo’s latest three- and four-cylinder powertrains. A host of petrol and diesel versions of the Drive-E plug-in hybrids are also expected to follow.
The XC40 belongs to the company's upcoming 40-series of compact cars, which includes the new S40 and V40. Volvo has confirmed that the entire 40-series family will be produced at its Ghent factory in Belgium, also where the company's future CMA-based cars are to be produced.


























