Volvo plots XC30 baby SUV

Compact crossover a key part of new company boss Stefan Jacoby's product proliferation plans
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Volvo is developing an entry-level XC30 crossover to slot into its line-up below the XC90 and XC60 (pictured), according to UK's Autocar magazine.

The new model addition is reportedly part of a product diversification plan laid out by recently installed company boss Stefan Jacoby, and it will be pitched primarily at the European market.

Autocar suggests the new model may also be built in China, as Volvo is now under the ownership of Geely.

The British publication reports the XC30 will launch in 2013, taking the fight to the likes of the BMW X1 and Audi Q3. Autocar also lists among its potential rivals a new baby off-roader being developed by Mercedes-Benz (which may be badged GLC).

There will be economies of scale at work, as the junior Volvo SUV will be based on an all-wheel-drive version of the P1 platform that underpins the current C30 hatchback.

The XC30 will target a more youthful audience than its existing demographic and company execs are reportedly hopeful it will replicate the profitability of the XC60, Volvo's number one seller both globally and in Australia.

The vehicle's styling is tipped to be "in the mould of the XC60, but with added visual dynamism and a class-leading interior". It will measure a compact 4350mm in length, meaning it will be around 280mm shorter than the XC60.

According to Autocar, there will be a standard-wheelbase model for the Euro market, but it may be supplemented by a stretched version for China and potentially the US. Volkswagen does likewise with the Tiguan, which is lengthened for the Chinese market.

At face value, the addition of another crossover model makes a lot of sense for Volvo. Of the 4332 vehicles it shifted in Australia until the end of November last year, 2910 sales were accounted for by the XC60, XC70 and XC90.

Given the burgeoning volumes generated by the compact SUV segment (101,480 Australian sales until the end of November last year), the XC30 will provide a much-needed boost for Volvo.

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