Volvo and Geely work on new platform: V40 replacement to be first of several compact premiums from Sweden

Volvo also intends to use the platform for a compact SUV to rival the Audi Q3

Volvo is developing a new platform for its compact vehicles of the future.

Most notably, the new structure will underpin the next-generation V40. But Volvo’s R&D boss Peter Mertens says it must be flexible enough to go under high-volume and premium offerings alike.

An additional challenge, says Mertens, is that Volvo needs to keep enough difference between its vehicles and those produced by parent company Geely. The Chinese giant is heavily involved in the development work taking place at a new facility in Gothenburg.

The new platform is crucial to Volvo’s development plans, which call for a major assault on the premium compact market. ‘We have to cover everything from the mass market to an Audi A3 rival,’ said Mertens.

Volvo also intends to use the platform for a compact SUV to rival the Audi Q3. This will almost certainly be called the XC40.

Geely’s involvement in the project, meanwhile, will see it use the new platform on its own range of compact vehicles for sale in its home market of China.