New XC model to kill off S40?

Is the S40 dead, set to be replaced by a baby XC softroader? That’s the most likely conclusion we've drawn from discussions with a number of key Volvo personal last week.

Discussed in the shadow of the launch of the S40/V50's larger and much more accomplished S60 sibling, the future of Volvo's Focus-based small sedan and wagon looks far from certain. In fact, it seems even the decision to facelift the car is on hold.

Volvo insiders admitted to the Carsales Network that any announcement regarding the future of the S40/V50 was still some way off. They expected the future of the car would be resolved in "the next 12 months" but would not comment on any timing for a facelift for the car, nor the timeframe for the debut of its replacement.

"With most models there is a clear plan. We have no news on timing for [the S40]," our Volvo source stated.

"We are keen to understand how the S60 and V60 will impact the S40. Currently there is less space in our line-up for the car [S40/V50]. It doesn't sit in any segment and doesn't directly compete with established small or medium car."

The current second generation S40 arrived Down Under in 2004. Though it's been tweaked since, the car is essentially unchanged. In the faster moving flow of small and medium cars an all-new replacement is almost overdue.

Volvo execs said the next 12 months are "crucial" for the S40.

"Maybe the gap between C30 and S60 is too big -- but how to fill it?" our source mused.

At the Sintra Portugal launch of the S60, Volvo execs again categorically ruled out the prospect of a five-door variant of the C30. Speculation is therefore that the S40/V50 'gap' will likely be addressed by a compact softroader.

With BMW seemingly onto a winner in sales terms with X1 and a Q3 reportedly in the wings, XC40 has a pleasant ring to it.

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