Volvo is reportedly preparing a hybrid or electric car in the B-segment

In what would be its first B-segment vehicle, Volvo has begun development of a hybrid or electric model. The decision came after the Swedish firm recorded good sales figures for its V60 Plug-in Hybrid. But in addition, Volvo will also take advantage of the success that smaller cars are enjoying in the market, in this case drawing on the experience of its partners at Geely.

Both companies plan to begin working on the new Scalable Platform Architecture, which will be key to the renewal of all their models from 2015 onwards. As for the B-segment project, Volvo acknowledges that it has held discussions with Geely representatives, concluding that it will need a strategic partner who can at least help define the platform on which the car will be built, in addition to guaranteeing access to an electric or hybrid powertrain.

Volvo has realised that it can associate the success of the V60 Plug-in Hybrid with a more affordable model. Whereas before the hybrid’s launch Volvo expected to sell 5,000 units, its most recent estimates suggest it could place around 10,000 units of the V60 hybrid on the market, mainly in Northern European countries.

Superminis do not offer a particularly wide profit margin, unless they are sold in almost exaggerated volumes. However, it is the segment that has grown the most in recent years, along with the low-cost segment. A B-segment plug-in would also help Volvo meet more easily all the CO2 emission reference levels the EC will set in the future. It would suit the Swedish company, but others have not seen fit to partner with them, for now. We will see whether the Swedes finally decide to venture into the B-segment on their own.

Source | Autocar