Volvo C30 Electric
Volvo C30 Electric Volvo

In production since 2006, the aging Volvo C30 is near the end of its product life. A quirky Swedish alternative that falls between the ubiquitous VW GTI hot-hatch and the cult-icon MINI Cooper, Volvo is keen to replace its C30 and will even engineer the next model over an all-new small car platform.

An ambitious undertaking, Volvo already has its hands tied as its also working on the SPA platform for its midsize and large cars as well as a new fuel-efficient range of small-displacement engines.

Volvo's solution, according to an article from Motor Authority, is to reach out to other firms in order to pursue a joint project. What's more, if a suitable partner is found, Volvo may even have the means to expand its small-car range with another product that falls below the C30.

During an interview conducted by AutoNews Europe, Volvo CEO Stefan Jacoby confirmed that a small Volvo was in the cards. "Premium customers no longer define luxury based on size of the car or number of cylinders. There are other attributes which will come into play."

Possibly called the C20, the compact city hatch will fall squarely against the MINI Cooper and Audi A1. Although the market may seem a little crowded now for an additional player, industry observers believe that increased congestion in urban areas, greater environmental awareness among car buyers, and rising fuel costs will steer the trend upwards.

Volvo has not confirmed the official release of its compact city model but several upcoming updates in the pipeline will already keep the automaker busy for the next couple of years.

Expect the next mini Volvo to unveil no sooner than some time after the next-generation SPA platform XC90 SUV, S80 luxury sedan, as well as renewed versions of the V70/XC70.