Mike Stevens | Aug 23, 2012

Volvo is reportedly considering a new compact model that would enter beneath the small C30 three-door, taking on the MINI Cooper and Audi's A1 light car.

A new report in industry paper Automotive News suggests the Chinese-owned Swedish carmaker could introduce such a model after its existing line-up has been refreshed.

Speaking with the paper, Volvo boss Stefan Jacoby said that a new light model could help to introduce the Volvo range to a new generation of buyers.

"Premium customers no longer define luxury based on the size of the car or number of cylinders, there are other attributes which will come into play," Jacoby said.

Jacoby added that a smaller engine option would be needed before a new light model would be feasable, potentially developed together with new parent Zhejiang Geely.

The new model would likely be sometime away however, with the carmaker's new Scalable Platform Architecture and a number of new and updated models already planned over the coming years.

“My priority is to bring the Scalable Platform Architecture online and to renew Volvo’s core ranges, the 60, the 80/90 and the SUVs,” Jacoby told Automotive News.

“When I have managed this, I will look to diversification, going into niches, doing sporty versions and also looking to smaller cars.”

Volvo's next new model bound for Australia is the V40 small car (shown above), which will be followed in the coming year by a high-riding crossover version likely to be known as the XC40.

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