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Volvo expresses interest in hybrid supermini

Obligation to lower range CO2 emissions could move Volvo into the B-segment if a suitable partner can be found

Volvo would consider building a supermini if it could find a partner willing to share a suitable platform that could use an electric or hybrid powertrain, according to the firm’s head of product planning Lex Kerssemakers.

“We have no plans at the moment, but we all know the role of the B-segment is increasing in terms of sales and pushing down average emissions,” said Kerssemakers. “Even then, if we did it, we’d need a platform partner and a guarantee of an electric or hybrid powertrain.

“At present there are no firm plans, but it is a discussion. Every manufacturer is talking about platform and parts sharing at the moment – it is the only sensible way – so it is certainly something that might be possible.”

Volvo and its owner Geely are currently working on their own new platform architecture for its next generation of cars. In 2015 it will launch its Scalable Platform Architecture, which will underpin everything from the next S60 to the range-topping next generation XC90.

“We explored the possibility of joint ventures with partners closely,” said Kerssemakers. “But when the deadline passed without an agreement, we made the decision to go it alone. What’s clear is that we can’t afford that kind of investment for more platforms, but I cannot rule out partnerships.”

Production of the £48,775 Volvo V60 Plug-In Hybrid will be doubled next year, as global sales continue to far outstrip anticipated demand.

Kerssemakers revealed that the company was expecting to sell 5000 cars in Europe in its first year on sale, as a result of its niche appeal and high price. However, demand suggests 10,000 annual sales are possible, and Volvo is now ramping up production to cope with demand.

“In Holland alone, where the taxation system is in favour of such cars, we have sold 3000 plug-in hybrids in just six months,” said Kerssemakers. “Our challenge now is to ramp up production, because such a car involves a lot of work, especially with outside suppliers. You cannot just turn on supply like a tap.”

Kerssemakers added that the success of the technology boded well, as Volvo intends to roll it out across its range, including on the all-new XC90, scheduled for launch in 2014.

“Customers are seeing this technology as the coolest thing, and that is critical, as being at the cutting edge of such areas is a pillar of Volvo's future,” he said. “An XC90 powered by a four-cylinder engine and a hybrid system would have sounded crazy even five years ago, but it is clear that the world has changed. We are not BMW, our sales do not depend on building a car around an engine, and through these innovations we can differentiate ourselves with no sacrifices.” Reported by Autocar 25 minutes ago.

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