For the first time in 20 years, Volvo is making motion to market a small-sized vehicle for sale in the United States. The Swedish company has the strong desire to release the C30, but the exception of key details has left it in R&D limbo: the power plant, the equipment, and pricing.

Lane Divides Ahead - Which Way?
Challenges exist in these decisions because many American consumers have steered away from small, upscale vehicles lately. If it's too powerful and well-equipped, will consumers pay the price? If it's underpowered and moderately equipped, will prospective buyers frown upon the idea and move on to another brand?

• Option1: Market the C30 as a stepping stone luxury commuter vehicle, fitted with a 4-cylinder and a price tag in the neighborhood of $23,000
• Option2: Saturate more space and upgrade performance with a 5-cylinder turbocharged engine, price tag near $25,000
• Option3: Throw all the bells and whistles in, add all-wheel drive, and sell it for about $30,000

New Concept, But Not Foreign
Leadership at Volvo wishes to ensure the car is a great value, as many people have the premonition of low price, low quality. "It needs a great powertrain, great audio and great wheels," stated Anne Belec, CEO of Volvo Cars of North America. "It's important for people to not think of it as a small car because then they expect small power and a small price."

The internal debate is also strong on how much power is needed and how capable the car should really be. Hakan Abrahamsson, the C30 project director, recounts a well-known fact to consider, "Small, light and quick equals a handling advantage," he said. "Every kilogram counts in speed and fast handling. You may get ultimate traction with all-wheel drive, but it's heavier and less agile."

At the End of the Day
Volvo can no doubt deliver on a fine automobile - the challenge is proving to the market base that a typical family-car producer can also successfully launch a smaller, sportier car with a value mindset. While sharing the platform with the S40 sedan and the V50 wagon, the C30 gets snubbed 9 inches and tracks a bit wider than its cousins - a varied concept from roomy, spacious interiors.

Other obstacles that will hamper sales of such a concept are:

• The US dollar is currently weak against the Euro and Swedish Kroner
• Other market failures may predispose the C30 idea: the BMW 318ti, Mercedes-Benz C230, and the Saab 9-2
• The Mini has already has a generous share of the small market, in spite of its minute interior and power

Remarks from CEO Fredrik Arp indicate that Volvo is very anxious to sell the C30 in the United States, even if it means skipping profit on direct sales and absorbing the loss elsewhere in the lineup.