Work on a new family of baby Volvos is under way following the opening of the new China Euro Vehicle Technology (CEVT) operation in Sweden.
It describes itself as an “engineering and development centre for future C-segment cars, addressing the needs of Volvo Cars and Geely Auto”.
Based in Gothenburg, CEVT is owned by Volvo’s parent company, Zhejiang Geely Holding Group.
The CEO of the new company is Mats Fagerhag, who was the lead engineer for the defunct Phoenix platform, which was intended to underpin a new family of Saabs.
CEVT says the new facility will be capable of engineering a whole vehicle, including the underlying architecture, powertrain and transmission, upper body engineering and exterior design.
This new C-segment architecture will be used for new Geely models - including models that will be sold in Europe - and the replacement for the Volvo V40 and the proposed XC40 compact SUV.
Because these vehicles will span a wide price and content range, the architecture will use an unusual philosophy based around ‘common interfaces’.
The technique was pioneered by truck maker Scania, which was also advising Fagerhag on the technique when he was developing Phoenix.
CEVT calls this technique “modular technology”. Firstly, the base structure will be scalable in its length, width, height, wheelbase and wheel size. Secondly, in order to build cars at widely differing price points, whole modules can be produced to meet “different performance steps”.