Volvo is looking to expand its range of SUVs to include a smaller model, below the XC40, and a larger flagship that would sit above the XC90 at the top of the line-up. The Swedish marque posted record sales volumes of more than 340,000 vehicles during the first half of 2019, helped by the addition of its smallest current SUV, the XC40. This was despite profits taking a slight hit due to tariffs and tighter margins in declining markets. • Best small SUVs and crossovers to buy Now Volvo boss Håkan Samuelsson has admitted that the firm may consider adding further types of car to its line-up. He told Auto Express: “Our strategy has been growth, but not through adding pure volumes. We have been going in hard and being better in segments where we have a really strong offering. That is the basic assumption. And now we also have the production capacity to grow this company. 3 “But we are not excluding the idea of additions, especially in very core segments, like the SUV. I think we are looking into this possibility now. You should not exclude the idea that there might be a bigger one, but maybe also a smaller one. We will surprise you about that in the future.”

There are a couple of key developments that make either of these new model segments possible for Volvo. The smaller model is being made feasible by the acquisition of a 50 per cent stake in small-car specialist Smart by Volvo’s owner, Geely. Bringing an additional brand to the group allows shared development costs as Volvo tries to downsize the CMA platform to support a vehicle that’s likely to be around four metres in length, the same as the likes of the Audi Q2 and MINI Countryman. It’s very likely to be offered only as a pure-electric car, as previewed in our exclusive images. Samuelsson first admitted to Auto Express in the spring that a new baby Volvo could happen – particularly if the firm manages to develop its CareByVolvo subscription model, which would potentially allow it to lease a small, urban-focused EV at a sustainable profit, instead of having to compete at traditional price points for that size of model. “We took one step down with XC40, which is our smallest SUV,” he said. “We have a very strong line-up of SUVs. So never say never. There’s a trend now that premiumness is more and more decoupled from size. Small cars can also be premium. Just because you have a small suit, it doesn’t have to be polyester.”