Speaking in London recently, new Volvo CEO Stefan Jacoby - the former boss of Volkswagen's US operations - said that the company's next entry-level model will be "a derivation of the C30, a Golf competitor."
Jacoby's comments seem to contradict his own remarks in August that the Chinese-owned Swedish carmaker would develop a new flagship model that would compete with BMW's 7 Series - suggesting any future small car would be aimed at the BMW 1 Series rather than the volume-selling and less prestigious Golf.
The change of tack looks to be intentional however, with Jacoby telling British magazine Autocar this week that Volvo would shift towards a philosophy of "functionality and Scandinavian elegance."
Whether this means Volvo has taken its aspirations down a notch remains to be seen, with Volvo Cars North America CEO Doug Speck telling industry paper Automotive News Europe only last month that the company's new small car would be aimed at BMW 1 Series buyers.
In Australia, Volvo's next new model will be the 2011 S60, set to make its local debut in December.