Volvo's only truly compact vehicle is the Volvo C30, which has been around since 2006. It's built on the Ford C1 platform that was developed under Ford's previous ownership of Volvo.
Volvo was acquired by Chinese company Geely Automotive in 2010. It's now coming time for Volvo to bring out a new range of compact vehicles, including a replacement for the Volvo C30.
Speaking with the Financial Times, Volvo CEO Stefan Jacoby said the company is looking for a car manufacturer to share platforms with.
"We are open for partners. We are open for collaboration in a win-win situation for sharing platforms, for sharing engines, and for a general higher scale of economics."
Volvo sales are on the rise on a global scale. Last year the Swedish company sold 450,000 vehicles, up 20 per cent compared with 2010. A range of compact models could bolster future sales even more.
Volvo will unveil the new compact Volvo V40 at the upcoming 2012 Geneva motor show in March. It will be a rival to the Volkswagen Golf and a replacement for the Volvo S40/V50.
What platform the new model will be based on and where it will be built is still to be confirmed. A replacement for the C30 is also yet to be sorted.