Volvo plans to offer a competitor to the Volkswagen Golf.
Speaking in London this month, Stefan Jacoby, CEO of Volvo Car Corp., said the next generation of the entry-level Volvo "will be a derivation of the C30, a Golf competitor," according to the Web site autocar.co.uk.
Jacoby, formerly CEO of Volkswagen Group of America, joined Volvo in August.
He also said Volvo's brand positioning would shift toward "functionality and Scandinavian elegance," according to the Web site.
Jacoby is driving the product assessment at Volvo, which was acquired in August by Zhejiang Geely Holding Group Co. of China. Volvo had been owned by Ford Motor Co.
Per-Ake Froberg, a Volvo spokesman in Gothenburg, Sweden, wrote in an Oct. 21 e-mail to Automotive News that Volvo's product plan includes a car for the "premium C segment, intended to compete with cars like BMW 1 series and Audi A3."
Froberg said the car is more than a year away.
Last month, Doug Speck, CEO of Volvo Cars of North America, told Automotive News that the automaker is considering a small car that targets the BMW 1 series and a compact crossover to compete with the BMW X1.
Volvo wants a small crossover because "there will be more X1 counterparts in the luxury segment," Speck said at the time.
Additionally, the small crossover would help fill the gaps created as Volvo discontinues station wagons in the United States, he said.
"The luxury station wagon segment has been on the decline over the last decade," Speck said, "and we have adjusted our product lineup with the XC products."