Much like the 3 Series-based BMW X1, Volvo is reportedly hard at work on its own diminutive soft-roader, modeled on the C30 hatchback. The new small crossover, said to be dubbed XC30 (natch), will ride on a slightly taller version of the C30's chassis, and while the drivetrain and powerplants are likely to be straight out of the three-door hatch, it's been reported that the styling will be more akin to that of the larger XC60 CUV.
The addition of a small(er) crossover to Volvo's lineup doesn't shock us, especially since other European luxury marques have discussed the possibility of creating crossovers in this segment as well. Audi is supposedly working on a Q3 to slot below the hot-selling Q5, and Mercedes-Benz has been rumored to be creating a crossover based on the next-generation B-Class, possibly called BLK.
Volvo is also said to be working on a five-door wagon-like version of the C30 (possibly called V30), but that supposed project remains in murkier parts of the rumormill for now. Look for the XC30 crossover to bow sometime in 2012.