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Small cars seem to be all the rage these days, with manufacturers from Mercedes to Aston Martin getting in on the act.

And Swedish car maker Volvo is no exception, with the C30 hatchback currently rolling off the firm's production lines.

Volvo seeks partner for small cars

However, it now appears that Volvo, a relatively small player in the mass market vehicle industry, wants a bit of outside help with future compact car projects, raising the possibility that Volvo spare parts may soon be made by another manufacturer.

Volvo is currently seeking a partner to share in the development of its compact models, it has emerged, something which would allow it to take advantage of economies of scale and reduce manufacturing costs.

"No decision has been made but we are open for partners," Volvo spokesman Duncan Forrester told City AM.

The company is due to unveil a new compact car, the V40, at the Geneva Motor Show in March this year.