Last week Volvo CEO Stefan Jacoby announced that the new v30 range would be called the v40.

And as regular as clockwork our spies have spotted the V40 undergoing winter testing in northern sweden.

Not just will the V40 be a brand new model, but it will also replace two existing models.

When the V40 arrives in 2012 the current S40 and V50 will be discontinued in Volvo line-up.

During an interview on friday Stefan Jacoby got the question if the V40 will replace the C30 as well but just answered that the C30 is a 3 door car and the new one will have more than 3 doors. So we have to wait and see what happens to the C30 in the future.

The v40 is targeted against the Audi A3 Sportsback and BMW new 1 series which is a hint at the aspirations at Volvo.

From the limited view of the car we guess that it will look a lot like a smaller version of the V60.

We expect the same engines to be carried on with a choice of 4 diesels from 115hp to 215hp, and soon to be followed by a range of petrols from 180hp to a range topping 320hp option along with AWD.

The new V40 will have its public debut in March at the Geneva Car Show.