As Volvo attempts to cope with tough new emissions regulations and its dire financial position, the carmaker’s chairman has revealed some of the strategies to help end the slump. Volvo has confirmed that it will cut up to 2,000 jobs worldwide and reduce production numbers, but that is just the start of its future plans.

Key to its turnaround will be the introduction of new fuel-efficient diesel models as well as the addition of more small cars in its lineup. Volvo chairman Fredrik Arp has told Swedish newspapers that three new diesel models will be launched later this year, designed to appeal to buyers in emerging markets such as China and Russia, reports Just-Auto. One of Volvo's new compact models will be a five-door version of the current C30 hatchback (pictured).

Previously reported plans include the roll-out of more efficient yet more powerful 2.0L and 2.5L turbocharged engines that are set to debut in the new S60 next year as well as the addition of a eight-speed gearbox sourced from ZF.

When asked if Volvo could be sold by Ford, Arp stuck to the official comment that managers were committed to improving the financial performance of the Swedish brand.