Volvo's big small-car hopes

Volvo insists its next generation of small cars will be true to the brand because it has controlled their development from the core architecture up.

Previously, the Swedish brand piggybacked with mixed success on the small car efforts of a series of other manufacturers.

It has co-opted Renault, Mitsubishi and Ford to help it develop small cars in recent decades with the result being a run of models of varying quality.

But under the ownership of Chinese giant Geely, Volvo has played the lead role in developing the Compact Modular Architecture (CMA). This will underpin a forthcoming generation of small Volvo cars and SUVs, beginning with the 2017 XC40 compact cross-over.

Two CMA concepts were shown last May in Sweden: the 40.1 concept, which gave a glimpse at the future XC40, and the 40.2, a hatch that would likely be the new V40. At least a third variant, an S40 sedan, is expected.

But a more affordable version of CMA will also underpin Geely future models as well as the first offerings from its new global brand Lynk & Co, which is reportedly aimed at Volkswagen.

“Previously, when we worked with Mitsubishi or Ford, the concept was already developed and we tried to make a Volvo out of that,” Volvo CEO Hakan Samuelsson told motoring.com.au. “Here it is a totally different story.

“We have developed the architecture to be a good Volvo platform and then modular to be a bit lower cost for Lynk & Co [and Geely]. That is absolutely achievable when you start from a scratch and a clean sheet of paper which is what we did.

“We share the same platform; we need higher volumes for smaller platforms, smaller engines, smaller gearboxes. And that architecture has been developed under the supervision of Volvo in a separate company.

“It will be used in our future 40 series and will be used in the Lynk & Co cars and so I feel that is a win-win. We bring down the cost and we can for the first time develop a 100 per cent Volvo.”

CMA is the little brother to SPA (Scalable Product Architecture), which underpins new-generation 90 series models already and will also be the basis of the next generation of 60-series models that start rolling out next year.

CMA and SPA vehicles will share many items, ranging from the Volvo three and four-cylinder engine family and hybrid drivetrains to touchscreens, ensuring significant economies of scale.

Samuelsson said that was key to Volvo being able to completely overhaul its orthodox range of vehicles by 2019 – meaning the XC90 will be the oldest car in the range – as well as its massive drive into electrification and autonomy.

Volvo plans to launch its first electric vehicle in 2019 and to have sold one million EVs by 2025. It has partnership with Uber to develop self-driving cars.

“We have only one engine, one powertrain, one electronics, one touch screen. Go into Mercedes and count how many touch screens they have or how many engines they have.

“Then you divide them all per components and you will find no big difference. So, you shouldn’t be misled by looking at the number of cars, you should look at the number of central units, rear axles, number of engines and so on that is where you have the efficiencies.”

Samuelsson played down the prospect of adding many new variants to the model line-up beyond the XC40. At least for now.

“Being small requires concentration also,” he said. “You cannot be everywhere. You cannot have convertibles, mini-vans, SUVs.

“You have to say ‘here are Volvos’ otherwise we would not have the money. It has to be a more narrow portfolio, the Volvo core first. After 2020 we can talk about additional variants.”