Volvo will reportedly debut its compact SUV in early 2018, with the model said to be called the XC40.

According to sources cited by AutoNews Europe, the XC40 will be the first Volvo to use the company’s new compact modular architecture (CMA) platform. The next-generation Volvo V40 and V40 Cross Country will also be underpinned by the new platform in 2019.

Volvo CEO Hakan Samuelsson said a compact SUV is a priority for the carmaker. However, he did not confirm the name of the model or the timing of its arrival.

The company has confirmed that its Ghent plant in Belgium will build models underpinned by the new CMA platform and that it will expand its compact lineup once the platform debuts. Currently, Volvo’s compact models include the V40 and V40 Cross Country.

Volvo is investing €200 million ($228 million) in the Ghent plant to retool it for the new CMA-based models. The facility currently builds the Volvo S60, V40, V40 Cross Country and XC60 models. Volvo is co-developing the CMA platform with sister brand Geely Auto. Volvo’s factory in Chengdu, China, also will build CMA-based vehicles.

Hakan Samuelsson said Volvo’s future compact models will have in-house powertrains, plug-in hybrid variants and even self-driving technology.

“We will not be sourcing engines from other manufacturers. Instead, we will be offering three- and four-cylinder versions of our own new engine program. We will also offer a plug-in hybrid for the compact models. Autonomous driving will be an option we will offer in our cars as of 2020, also in the compact lineup,” the executive said.

Note: Volvo V40 Cross Country pictured

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