Volvo’s in-house performance division, Polestar, is transforming itself into a performance car manufacturer in its own right, much like Mercedes-Benz's Affalterbach-based Mercedes-AMG did when began producing the SLS and, now, GT models.

The Swedish brand has had a relationship with Polestar that has grown in prominence over the last few years. Firstly it was just a software update for cars like the V40 and S60. Then it delivered a full overhaul to the S60 Polestar that we drove in 2016. Now, Polestar plans to build its very own car to rival the performance brands from Audi, BMW and Mercedes-Benz.

More than that, Polestar’s very first performance car will be electric-powered. Whether that means full-electric or a hybrid of petrol and electric – like the McLaren P1 and La Ferrari – we will have to see. Jaguar has made a mainstream all-electric sports/SUV with the i-pace, so something similar from Polestar could be on the cards.

Polestar plans to build its performance model on Volvo’s current SPA platform that serves the S90, XC90, XC60 and V90. The platform is entirely scalable so will be used for the new 40 range that includes the V40, S40 and XC40.

The decision to turn Polestar into a full-force performance car maker apparently comes from parent company Geely. It has big plans for Volvo and sees Polestar as an AMG rival in the future.

If the rumour mill is to be believed, we could see the Polestar electric sportscar before the end of 2017.

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