Volvo is pondering creating an entry-level small crossover dubbed the XC20 targeted directly at the Audi Q2. Volvo’s head of research and development, Henrik Green, specifically said an XC20 could see the light of day.

The Audi Q2 is currently the only premium model in the small crossover segment and it seems apparent that Volvo is wasting no time in joining its German foe.

No timeline has been given for when we might see the XC20 launched by Green did say that the firm’s upcoming 1.5-liter three-cylinder turbocharged engine could be used by any vehicle in Volvo’s range, including the XC20 where it’ll deliver in excess of 150 hp in its performance guise.