Volvo has announced it is planning to develop a new entry-level Volvo to run up against the Volkswagen Golf. The new car will be based on the Volvo C30.

Volvo’s new CEO Stefan Jacoby, spoke in London recently outlining the Swedish maker’s new plans. He said the new car “will be a derivation of the C30, a Golf competitor”. He also said the new car will be more focused on sticking to traditional Volvo/Swedish ‘functionality and elegance’ rather than the sporty branding of the current Volvo C30.

Funny thing is, Stefan Jacoby only joined Volvo in August this year after leaving as CEO of… Volkswagen Group of America. The new car is also said to be the basis of an all-wheel wagon that will follow, to rival the likes of BMW’s X1.