Volvo Cars, the premium car maker, today further expands its line-up of SUVs with the launch of its new XC40 small premium SUV in Milan, Italy.

The arrival of the XC40 means that for the first time in its history, Volvo Cars has three new, globally available SUVs in what is the fastest growing segment of the automotive market, paving the way for further growth in terms of sales and profitability.

The new XC40 is the first model on Volvo Cars' new modular vehicle architecture (CMA), which will underpin all other upcoming cars in the 40 Series including fully electrified vehicles. Codeveloped within Geely, CMA provides the company with the necessary economies of scale for this segment.

"The XC40 is our first entry in the small SUV segment, broadening the appeal of the Volvo brand and moving it in a new direction," said Håkan Samuelsson, president and chief executive. "It represents a fresh, creative and distinctive new member of the Volvo line-up. So it only feels natural to reveal the XC40 here in Milan, a buzzing European hotspot for fashion, art, design and lifestyle."

In terms of technology, the XC40 brings the award-winning safety, connectivity and infotainment technologies known from the new 90 and 60 Series cars to the small SUV segment. Like its larger siblings, the XC40 highlights the transformational effect of these new, in-house developed technologies on brand and profitability.

These technologies make the XC40 one of the best-equipped small premium SUVs on the market. Safety and driver assistance features on the XC40 include Volvo Cars' Pilot Assist system, City Safety, Run-off Road protection and mitigation, Cross Traffic alert with brake support and the 360° Camera that helps drivers manoeuvre their car into tight parking spaces.

The XC40 also offers a radically new approach to storage inside the car. Ingenious interior design provides XC40 drivers with, among other things, more functional storage space in the doors and under the seats, a special space for phones including inductive charging, a fold-out hook for small bags and a removable waste bin in the tunnel console.

"Volvo has a strong leadership in design. The new XC40 is no exception, even by our already high standards," said Kevin McCann, Managing Director of Volvo Car Australia.

"We wanted the XC40 to be a fresh, creative and distinctive member of the Volvo line-up, allowing its drivers to put their personality in their driveway. Drivers want a car that reflects their personality, and the XC40 is that car".

"The exterior has an athletic sculpture, while the interior of the XC40 is multifaceted and ingenious, making it yet another example of our human-centric approach. The XC40 is a perfect car for an active Australian lifestyle, and perfectly represents our ongoing transformation plan".

From start of production, the XC40 will be available with a D4 diesel or a T5 petrol four-cylinder Drive-E powertrain. Further powertrain options, including a hybridised as well as a pure electric version, will be added later. The XC40 will also be the first Volvo model to be available with Volvo Cars' new 3-cylinder engine.

Production of the new XC40 starts in Volvo Cars' plant in Ghent, Belgium in November.

For more details about the New Volvo XC40 visit; www.volvocars.com/au/cars/new-models/xc40

Volvo Car Group in 2016
For the 2016 financial year, Volvo Car Group recorded an operating profit of 11,014 MSEK (6,620 MSEK in 2015). Revenue over the period amounted to 180,672 MSEK (164,043 MSEK). For the full year 2016, global sales reached a record 534,332 cars, an increase of 6.2 per cent versus 2015. The record sales and operating profit cleared the way for Volvo Car Group to continue investing in its global transformation plan.

About Volvo Car Group
Volvo has been in operation since 1927. Today, Volvo Cars is one of the most well-known and respected car brands in the world with sales of 534,332 cars in 2016 in about 100 countries. Volvo Cars has been under the ownership of the Zhejiang Geely Holding (Geely Holding) of China since 2010. It formed part of the Swedish Volvo Group until 1999, when the company was bought by Ford Motor Company of the US. In 2010, Volvo Cars was acquired by Geely Holding. As of December 2016, Volvo Cars had over 31,000 employees worldwide. Volvo Cars head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars head office for China is located in Shanghai. The company's main car production plants are located in Gothenburg (Sweden), Ghent (Belgium), Chengdu and Daqing (China), while engines are manufactured in Skövde (Sweden) and Zhangjiakou (China) and body components in Olofström (Sweden).