Although Volvo has the V40 Cross Country in its lineup (which is also available with four-wheel drive), the Swedish automaker wants to offer a proper SUV as well in the compact segment.

Likely to be called XC40, Volvo’s new compact SUV was confirmed by the carmaker’s chairman Hakan Samuelsson. “A small SUV is very high on our wish list. There is a clear trend towards downsizing and we will provide customers with an SUV that is small in stature but remains premium in nature,” the executive was quoted as saying by WhatCar.

The XC40 will be based on the upcoming Compact Modular Architecture (CMA) that is being developed with Geely, Volvo’s owner. However, the new model will not arrive until Volvo refreshes all of its existing models, as the company will put an emphasis on proven volume sellers rather than diversifying the range.

By 2020 Volvo will have three core ranges, badged 40, 60 and 90, all of which will be offered in saloon (S), estate (V) and SUV (XC) form. As for other body styles, Samuelsson said Volvo has no current plans to replace the C30 compact hatchback. Volvo’s other C-badged model, the C70 convertible, was discontinued last year.

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