Future Volvo models based on the firm’s Compact Modular Architecture (CMA), could be built in China in a plant shared with its Chinese parent company, Geely. While Volvo’s larger models like the XC90 are built on the modular Scalable Platform Architercture (SPA), the CMA platform will likely underpin the V40 and a possible small crossover dubbed the XC40. An S40 sedan which would compete against the Mercedes CLA and Audi A3 is a further option.
Volvo is still weighing the impact that having models built in China could have on their luxury image against the lower production costs that would increase margins for export markets. It is believed at this point that models headed for the U.S market would come from the Belgium plant because of that first concern.