Volvo is considering launching a new performance sub-division to rival Mercedes AMG and BMWs M GmbH.
The first model to go on sale would be a hot version of the C30 hatch, and a concept version has already been built to measure public interest.
Developed by Polestar, the team responsible for Volvos entry in the Swedish Touring Car Championship, this concept features four-wheel drive, is powered by a 399bhp five-cylinder turbo engine and can get from 0-62mph in less than five seconds.
Production versions would wear a new PCP badge, which stands for Performance Concept Prototype.
If the project gets the go-ahead, the C30 PCP would be priced at about 50,000 and limited to a run of around 500 cars.
Ultimately, Volvo would like to have a PCP version of every model in its range.