A new report indicates Volvo is planning the XC40 but it won't be out until at least five years from now.
Volvo's new Scalable Platform Architecture (SPA) platform will make its debut in late 2014 with the arrival of the XC90 successor. However, SPA will not be compatible with a possible XC40 since the smallest SPA-based model will probably be the next generation S60.
As a result, Volvo will have to either develop a new platform for this model (highly unlikely) or they will reach a sharing agreement with another automaker. The Swedish company will have to act fast as the crossover segment is extremely popular these days.
In related news, Volvo and its owner Geely are allegedly planning to launch a mid-market brand which will be positioned above the entry-level Geely and below the premium Volvo. It's not known at the moment whether it will be only for the Chinese market or these new models will be sold in the rest of the world as well.
Note: 2013 Volvo V40 Cross Country pictured.