Volvo reveals first XC40, new V40

We saw the first teaser images last week and now Volvo has revealed two brand-new concept cars that preview the first members of its ambitious global small-car strategy -- the all-new XC40 and new V40.

The first of the new-generation Swedish small cars – the long-awaited XC40 crossover – will go into production next year and Volvo Car Australia has confirmed the compact premium SUV will arrive Down Under by late 2017 or early 2018.

Volvo's first XC40 will be followed by the redesigned V40 hatch, also seen here in concept form, while a new small sedan called the S40 is also expected. At this stage it's unclear whether Volvo will renew its V40 Cross Country.

All three cars will be based on Volvo's brand-new Compact Modular Architecture (CMA) platform, which applies technologies from the XC90's larger Scalable Product Architecture (SPA) and is designed specifically for the Swedish car-maker's small car family.

Biggest technical news is confirmation the new 40-series range will include "an electric vehicle and a plug-in hybrid variant", as part of Volvo’s stated ambition to sell up a million electrified cars by 2025.

The plug-in hybrid model will be powered by Volvo’s new 'T5 Twin Engine' powertrain, which incorporates a new three-cylinder Drive-E petrol engine and a new seven-speed dual-clutch transmission coupled to an electric motor powered by a lithium-ion battery.

Adopting "a more accessible front-wheel [drive] based system for its smaller cars", the configuration is a departure from Volvo's existing Twin Engine All-Wheel Drive powertrain seen in the XC90 T8.

The company also claims its new small cars will deliver "a full range of innovative connectivity services, plus the world’s most advanced standard package of safety features and Scandinavian interior design".

“Our new expanded range of smaller cars will improve and broaden Volvo’s presence in an important and growing market segment in Australia and around the world,” said Volvo Car Australia managing director Kevin McCann.

"In 2015 when we launched the All-New XC90 SUV in Australia we revealed the versatility of the Scalable Product Architecture (SPA). The new-generation 40-series will benefit from those advanced technologies, and the result will be a very distinctive small car that will stand out from the crowd.”

Volvo's Aussie boss indicated that both the zero-emissions battery-electric vehicle and the Twin Engine plug-in hybrid variants -- technical images of which can be seen here -- within the 40 series family could become available here.

“By taking a modular approach to both vehicle architecture and powertrain development we have succeeded in leap-frogging many of the players in the prestige segment,” said McCann.

“Our new battery electric powertrain variant opens yet another exciting chapter in the unfolding Volvo story.”

Among the many images of the concepts is a four-cylinder CMA vehicle, but there's no sign yet of diesel versions of the XC40 or V40, a high-performance version of which could be tuned by Polestar to deliver a circa-235kW all-wheel drive V40 hot hatch to rival the likes of Ford’s Focus RS, Honda Civic Type-R and Volkswagen’s Golf R.

A new V40 powered by the turbocharged 2.0-litre four-cylinder Drive-E engine seen in the XC90 could become Volvo’s quickest ever production model, with a 0-100km/h as low as 4.5 seconds.

As these images show, both five-door models bring more angular proportions and surfacing than the existing V40 hatch, which is currently Volvo’s smallest model, as well as headlights featuring the Swedish brand’s latest ‘Thor’s Hammer’ design.

The long-awaited XC40 crossover – to be positioned beneath the XC60 and new XC90 – will be a rival for Audi's Q3 and is expected to become the company’s top-selling model in Australia.

Volvo is also working on SPA-based replacements for its mid-size 60 series models, including the V60 sedan, V60 wagon, XC60 SUV and perhaps the V60 Cross Country.

Before that locally, Volvo Car Australia will this year launch mildly facelifted V40 and V40 Cross Country models with Thor’s Hammer headlights, plus T8 plug-in and R-Design sports versions of the XC90 and Polestar tuning kits for the V40, S60, V60 and XC60 – all around mid-year.

Later this year local Volvo showrooms will be graced by new four-cylinder turbo-powered Polestar versions of the current S60 and V60, and the big new S90 flagship sedan – both in the final quarter.

Volvo has previously committed to producing an EV based on its SPA platform by 2019, and has a mid-term target of 800,000 vehicles sales – up from 503,000 in 2015.

Volvo's global sales revenues were up by 24 per cent to March this year, following an 11.9 per cent lift in vehicle sales in the same period.