Volvo has announced its next-gen compact cars are going to be assembled in Belgium at the Ghent factory.

Volvo has announced its next-gen compact cars are going to be assembled in Belgium at the Ghent factory.

The company's CEO Hakan Samuelsson declared the next generation of compact cars will use a newly developed C-segment Modular Architecture (CMA) shared with parent company Geely. There are ongoing discussions whether the cars will also be built at a Geely-owned factory in China, but a final decision has not been taken just yet.

The first all-new Volvo compact model to be launched will be the V40 scheduled to go on sale in 2016. This new platform is flexible enough to allow the development of a "wide range of products" according to Volvo's Senior Vice President of Product Strategy & Vehicle Line Management and one of them could be a successor for the C30. An XC40 is set to join the range sometime in 2018 and will be offered with a plug-in hybrid setup borrowed from the hatchback.

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