Volvo's CEO has revealed that the company is considering a competitor for the MINI.

The smallest model in Volvo’s lineup right now is the recently introduced 2013 V40 subcompact that went on sale in July. It seems that the Swedish automaker is considering a new model which would tackle the MINI, but for this to happen they’ll have to find a partner to share costs, along with getting a smaller engine that could be co-developed with parent Zhejiang Geely of China, according to an interview given to Automotive News Europe by Volvo’s CEO Jacoby.

He also mentioned that those who buy premium cars are willing to pay extra for a subcompact model. This is probably true taking into consideration the data provided by market researchers JATO Dynamics which reveals that the entry-premium segment in Europe has increased in 2011 by 19 percent to 332,262 units, being led by cars such as the new Audi A1.

Since the V40 was launched just a month ago, Jacoby said that Volvo is not in a rush to launch this new model which would rival the MINI.


Gallery: Volvo considering a MINI rival