The current Volvo XC90 is a huge car as it is, but it appears that the Swedish automaker has plans to take things a step further by introducing a flagship model to take on the G07 BMW X7.

Volvo CEO Hakan Samuelsson told Auto Express that the company is undergoing a cost-streaming exercise to help restore profit growth in the second half of the year. However, while Volvo’s strong sales performance has been achieved through filling the holes in its product line-up (cue the 40, 60 and 90 series models), it is also considering adding cars in new segments.

“Our strategy has been growth but not through adding pure volumes. We have been going in hard and being better in segments where we have really strong offerings. That is the basic assumption. And now we also have the production capacity to grow this company, even a bit beyond 800,000-unit figure that we always talked about as a first ambition,” Samuelsson said.

“But we are not excluding the idea of additions, especially in very core segments like the SUV. I think we are looking into this possibility now. You should not exclude the idea that there might be a bigger one, but maybe also a smaller one. We will surprise you about that in the future,” he added.

This also fuels speculation that Volvo may finally consider introducing smaller models positioned below the 40 series range. “We took one step down with XC40, which is our smallest SUV. We have a very strong line-up of SUVs. So never say never. There is a trend now that premiumness is more and more decoupled from size. Small cars can also be premium. Just because you have a small suit, it doesn’t have to be polyester. So let’s see,” Samuelsson explained.

Volvo’s sales in the first half of 2019 saw its SUV models account for 61% of sales, up 10% from the same period in 2018. Volvo expects this figure to reach 70% once the China-produced XC40 goes on sale in the republic. Over to you, would you consider getting a smaller-sized Volvo SUV?