Kez Casey | Jan 19, 2017

Volvo’s product overhaul is set to continue with the rumoured unveiling of a new compact crossover to be called the XC40 at the Shanghai Auto Show in April.

The XC40 represents a new addition to the Volvo range, stepping in above the current V40 Cross Country with a higher stance and more upright styling as previewed by the 40.1 concept in 2016.

Underneath the new sheetmetal the XC40 will be built atop a new Compact Modular Architecture (CMA) platform co-developed with Volvo’s Chinese parent company, Geely.

Geely’s newest Lynk & Co brand will also use the CMA platform for its upcoming range of highly-connected and vehicle sharing ready vehicles previewed late in 2016 by the 01 Concept, which is expected to make its production debut alongside the XC40 at Shanghai.

Set to tackle small prestige SUVs like the BMW X1, Mercedes-Benz GLA and Audi Q3, the XC40 is expected to be powered by either a turbocharged 1.5-litre three-cylinder petrol or 2.0-litre four-cylinder petrol engine, with a 190kW flagship plug-in hybrid version of the three-cylinder engine also likely.

Production of the XC40 for the Chinese market will take place in China, but production for markets including Europe and USA could just as easily come from a European market production facility.

A compact S40 sedan will also join the XC40 later in the year, with both models expected to go on sale overseas by late 2017 or early 2018.

MORE: Volvo News and Reviews

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