Volvo works on BMW 1-Series and X1 competitors

Encouraged by the huge success the new S60 has produced, Volvo has decided to expand its line-up with two small models that will target BMW, more precisely the 1-Series and X1.

The first model is a sedan that will be smaller than the current S40, which will be going out of production in the next two years due to the similarity in sizes between the S40 and the redesigned S60. A smaller crossover is also said to be in the works because Volvo thinks "there will be more X1 counterparts in the luxury segment, " said Doug Speck, CEO of Volvo Cars of North America. The future crossover will also help fill in the gaps as Volvo continues the extinction of station wagons in the U.S.

As for the larger models, the S80 sedan and the XC90 crossover will get their own platforms when the vehicles are redesigned in the next two years. "We need to do something about each of those new products," Speck said. "The large S80 sedan segment is very big in China, and that range of sedan is even more critical for all the luxury brands than it has been five years ago."