Volvo penning XC30 crossover for 2013

Volvo is developing an entry-level crossover as part of a wider future model scheme started by Stefan Jacoby.

Volvo has watched its market-share in Europe freefall in recent years, so this new SUV will be primarily aimed at Europe, however, the newcomer is also being looked at to offer a basis for planned production actions in China.

The sub-compact SUV will carry the XC30 nameplate and will compete directly with the BMW X1, Audi Q3, and Mercedes� forthcoming premium mini-SUV, when it goes on sale in 2013.

Underpinning the C30 hatchback, the vehicle is being produced to sway younger customers away from BMW. It�s also being planned to offer similar profitability attained by the best-selling XC60.

Internal sources suggest the 5 seat XC30 will be immediately recognisable as a Volvo with an exterior �in the mould of the XC60 but with added visual dynamism and a class-leading interior�. The new model will be 280mm shorter than the XC60, at 4,350mm.

The XC30 has pushed back the all-new S40, which has been placed on a temporary hold for around 18 months from its intended introduction in an attempt to free up engineering space.

Jacoby said: �I�d rather get two or three cars right than attempt to compete in every market segment.�

Two variant may be on offer: a regular model for Europe and a long-wheelbase for North America and China.