New S60 to compete directly with 3 series & A4, to have V60 as wagon variant

Motor Trend cites an interview with an un-named Volvo marketing source who confirmed the sizing and market placement of the new 2010 S60 model. While the outgoing S60 sat in a size category above it's perceived main competition, the new model will compete head-on with the German trio of the BMW 3-series, Audi A4 and Mercedes C-class.
 
A more controversial statement is that the wagon or estate variant will be confusingly called the Volvo V60 - this remains to be seen, since as recently as 2004 Volvo separated the S40 and V40 into S40 and V50 to give the wagon/estate it's own distinct personality. While the previous V70 was based on the S60 platform (same car from the drivers door forward), the all-new 2007 V70 is based on the 2006 S80, continuing the theme of odd numbers for estates, even numbers for saloons/sedans.

I'm not sure will this see a return to the S40/V40 way of doing things - but it does signal the possibility that the current V50 - a remarkably handsome and uniquely sized estate - will live on, perhaps in a C30 - XC30 - V50 hatchback trio to compete with the Audi A3 and BMW 1-series. A possible XC30 model would be an unlikely competitor for a number of off-road-styled compact hatches like the Dodge Caliber and Nissan Qashqai which have been doing well of late, particularly in economical diesel engined versions in Europe.