Volvo has a very clear strategy models. The Swedish brand commitment to being a global manufacturer and all its models are also. That seems to be one of the reasons behind the decision of Volvo not to create more access models. The future Volvo S40 and XC40, already anticipated with two prototypes, will be the smaller models of the Swedish firm. Not go for suvs or SUVs smaller.
Volvo would have the capacity to do this with the new modular platform CMA, but prefer to focus in a range that can be competitive in all global markets. In addition, open up new niches for the brand could be difficult in a market in which there are many established models and well-off, thus putting at risk the viability of those projects.
This means that either there will be a replacement for the Volvo C30, the successor of the legendary Volvo 480, a model that has already made it clear to Volvo that some terrain can be a little hostile. This compact was the sale between 2005 and 2011, selling around 200,000 units globally in a market that in Europe it is the most important, the compact segment C.
With this decision, Volvo stands out from the other premium manufacturers, such as Mercedes or Audi, in its quest to open up new niches premium in the smaller segments. In the case of smaller brands such as Volvo, those niches of small cars are even more difficult to monetize due to the smaller and the more expensive a car, the lower your margin trade.
Source – Car & Driver