GOTHENBURG, Sweden — Volvo is developing a smaller off-roader than its existing XC90.
The car, which could be called XC50, will be pitched directly into the growing compact-SUV sector as a rival to BMW's X3, Toyota's RAV4 and sister company Land Rover's Freelander.
Volvo won't confirm the project, but the sector is so lucrative Volvo is finding it hard to resist. Insiders suggest it could be unveiled as a concept car at one of next year's major auto shows. The vehicle could share its platform with the next-generation Freelander and the forthcoming Jaguar "crossover," which would allow Ford to leverage more volume from the small Land Rover's underpinnings.
Automakers are scrambling to get into the compact-SUV sector; new models in the pipeline include the new RAV4 and Freelander, the Mitsubishi Outlander, the Mercedes X-Class and a forthcoming Volkswagen Golf-based off-roader. Audi is also believed to be eyeing the sector; its offering would be called Q5.
Source: edmunds
It could possibly be launched MY2007. Here is a pic of what it could look like:
http://media.autobild.de/bild/3/a420d402358e6274a099026675e986a3_1.jpg