New Volvo XC90 on the way

Volvo product planner Lex Kerssemakers says the new wagon is well overdue. "We were preoccupied,'' he says of the delay. "I sympathise with Australian buyers who have been a strong supporter of the car, but we had a lot on our plate.

Australia is in the Top 5 of XC90 buyers worldwide. "But I can confirm a new XC90 is coming and it will retain all the elements that made the current car so popular.

''Kerssemakers, who headed up Volvo's overseas operations - including Australia - five years ago, says the design of the XC90 replacement is "still in the early stages'' but he says it will still be a seven seater and retain the easy entry and egress to the third seat row.

"These are some of the things that made it popular.'' he says. "It will grow a bit in size - that's mainly because of safety requirements. But it will definitely be under 5m in length. "There are critical issues with a new model, including safety and the need to balance space and vehicle weight. It's very complex.''

The next XC90 is likely to come only with a four-cylinder engine in different power and fuel choices. "We see hurdles in performance (with a four) but we're very comfortable with a four cylinder with turbocharging,'' he says. " That technology gives very good driving performance - because it's all about torque - and fuel economy and low emissions.

"We're even looking at twin charging (supercharger and turbocharger together) and that may come within two years. Of course there is also plug-in hybrids which are suitable for all-wheel drive vehicles.''

Volvo last year sold 45,000 XC90s. "That's pretty strong for a car of its age,'' Kerssemakers says. "We have just done an update - which doesn't involve any mechanical changes - which will last until the new model.''

He says he is keen to see a smaller SUV in the Volvo lineup but repeats that the company is very busy on other projects. "I won't speculate on a small SUV other to say it would be a nice fit.

But we have other things to do first. The XC90 replacement has to come out first and then the replacement for the S80 - about the same time,'' he says.

"The S80 won't be a bigger car. We have a long wheelbase S80 which we make in China for the local market, but that's purely for China.

"We're driven by Europe and China. A large sedan is important in Europe but we're not looking at a Mercedes S-Class rival. "That market is too small. We're happy with the S80's size and position in the market.''