Volvo executives have stated as recently as last month that the carmaker is looking to position its future vehicles further upmarket and into segments dominated by the likes of Germany’s luxury marques. This was to help Ford, which still owns the Swedish carmaker, to keep a foot in the door to the luxury market now that it has sold off the rest of its former Premier Auto Group. However, latest reports indicate that such a strategy is proving too expensive and a better solution would be to focus on less expensive models and higher volumes.

Volvo’s original decision to develop the XC60 SUV (pictured) from the ground up proved to be too costly and led to significant delays in its development. A future strategy, an inside source has revealed to Autocar, would be to utilize existing Ford technology and platforms to keep costs and development times low.

There are also plans for the introduction of new fuel-efficient diesel models as well as the addition of more small cars in its lineup.

The radical changes are part of Ford’s plans to turnaround Volvo’s dire financial situation and boost its production levels almost 50%. While many have suggested that Ford is looking to spruce up the company ahead of a potential sale, officials have continued to deny the rumors. One of the key reasons is that Ford is unwilling to trade Volvo’s technology, namely its advanced safety features, to rival carmakers.