The entire Volvo range will be renewed and expanded to nine cars by 2019, including a Nissan Qashqai rival and a Mercedes CLA rival, according to plans laid out by its head of product strategy Lex Kerssemakers.
Volvo has targeted growing sales from 428,000 cars a year in 2013 to 800,000 a year by 2020, with an all-new line-up underpinning the growth.
Talking at the launch of the all-new XC90, Kerssemakers outlined plans to introduce large, medium and small versions of its S, V and XC vehicles - creating a range that complements itself across every segment.
"There are some discussions still, but that is the goal," said Kerssemakers. "We can see the trends - everyone is buying small SUVs and that is where we want to be. I can imagine a Volvo XC40. Likewise
the CLA type of vehicle is very popular in the US and China. It is an interesting concept."
The small cars will sit on a new platform being developed by Volvo and Chinese car maker Geely in Sweden. Dubbed 'CMA' it will underpin all future small Volvos once it is ready in around three years time. Until it is launched, no new small Volvos will be launched beyond the current line-up.
"Our key is to focus," added Kerssemakers. "We know where the sales volumes are and we must not be distracted from that task - that is why there are no coupe plans. We'd like them of course, but our first goal is the fill the big segments."
Kerssemakers also confirmed plans for Volvo to create a family of economical three cylinder engines, using the same block as it's four-cylinder units. These are likely to go on sale in around three years.
The Volvo S90 is widely tipped to be the firm's next major launch, with the Audi A6 and Mercedes E-class rival likely to be a major seller in the US and China.