Volvo has been spied from a far distance testing in Sweden their first-ever 2018 XC40 that had the production body covered with a two-layer camouflage. Past spy shots have shown a prototype testing on open streets as a lifted V40, yet now the vehicle has all the last panels set up and obviously it's sending a smaller XC90 vibe with familiar signs like the Thor's Hammer LED headlights.

Volvo's cutting edge compacts will be based on the Compact Modular Architecture or CMA platform created by Volvo in partnership with its parent company, Geely. Additionally, the platform guarantees advanced innovations in the areas of connectivity, electrification, and autonomous driving, and also the refined driving dynamics everyone is expecting from a premium offering.

Meanwhile, the automaker has already created a vehicle for Geely's new Lynk and Co mark, and the following recipient will be the 2018 XC40. The vehicle is anticipated to go on sale in 2018, as a 2019 model. It will take on the Audi Q3, BMW X1, Infiniti QX30 and Mercedes-Benz GLA.

The company's most powerful compact range is said to wear a T5 badge and highlight a twin engine plug-in hybrid powertrain comprising an inner combustion engine and electric drive system, just similar with the XC90 T8 Twin Engine. On the other hand, Volvo recently announced that there will be versions with 3 engines that will highlight "T2" and "T3" badges. Expect D2, D3, and D5 diesel variations also, however, it will not be in the United States.

Furthermore, Volvo will manufacture its new compact vehicles at its plant in Ghent, Belgium, where the current V40 and V40 Cross Country soft-roader derivative are manufactured. The vehicles are also anticipated to be manufactured China, most probably at a plant shared with Geely.

But before the all-new "40" series models arrive, Volvo will first introduce an upgraded "60" series models. The first of these will be an overhauled XC60. The all new 2018 XC40 crossover will make its debut at this year's Shanghai Motor Show in April.

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