Volvo considering small car

14 January 2002: Volvo is thought to be planning a car positioned below the S40 and V40 which would debut after the S40 and V40 are replaced in late 2003 or early 2004. The car, if produced, would share parts with Ford's new Fiesta (above).

The Ford-owned company, which this year expects to increase volume to 600,000 from about 420,000, knows it needs more young buyers, and a small car would fit into that strategy.

The car would also likely be built on a Ford production line, and Volvo will be aiming to make the car profitable in its first generation, something which other brands which have gone into the segment - such as Audi with its A2 and Mercedes-Benz with its A-Class - have failed to do.

BMW are also not expecting to make a profit with their Mini in its first generation. Sales in the US are expected to be key to making the retro but all modern car a financial success, and Volvo will also sell their small car in the US if it goes ahead.

January 2002