Volvo is planning to realign its model range with a new S60 saloon aimed at the BMW 3-series and a new S40 hatchback, both on sale in 2009-10.
The S60 will be based on the same joint Ford/Volvo technology that underpins the Mondeo and S80, and will ensure that Volvo manages to keep a competitor in the key compact executive market.
The future of the S60 was in doubt in 2006 as Volvo grappled with organising three overlapping saloons: S40, S60 and S80. It even risked squeezing the mid-range car out of the market altogether.
The solution is for Volvo to keep the S60 in its range, replacing today’s model in late 2009, and radically rethinking the replacement for the S40, due in 2010.
So instead of being retooled as a four-door saloon, the S40 will metamorphose into a five-door hatchback, making it a more conventional competitor for the Audi A3 and BMW 1-series. The S40 name is also tipped to disappear, possibly to be replaced by V30.
Focusing the S60 on the BMW 3-series and Audi A4 means that the new Volvo will grow only a little in its external dimensions, since the latest models from Germany have swollen in size to match today’s S60.