Something is brewing inside Volvo. With a multi-billion dollar investment secured, which is one of Sweden’s largest industrial investments, the Swedish carmaker will be developing two projects called SPA (Scalable Product Architecture) and VEA (Volvo Engine Architecture).

Volvo explains that the SPA is a ‘flexible, scalable product architecture that covers most of Volvo’s future car models.’ Or in other words, Volvo will also be embracing a modular platform that will be used in many models. New cars based on SPA will also be scalable systems and components that are manufactured in a flexible production system.

The VEA project will result in a new four-cylinder fuel-efficient engine family, which will find work in the new SPA. The engines will be built in Skövde while assembly of all drivetrains – including hybrids – will be at the Torslanda plant in Gothenburg.

The first Volvo that will be based on this new architecture is the next generation XC90. You’ll have to wait till the end of 2014 for it to happen.