One advantage with this architecture is that it gives a substantial freedom in the lay-out of the car and drivetrain components. First, it leaves the engine compartment more or less untouched. Thus, the engine compartment and lay-out there can be optimized for the conventional ICEs that still comprise the majority of sales (and thus, has highest priority!). Second, the electric drive can be replaced by the flywheel store/drive that Volvo is also developing as another option. Or, perhaps a combination of both can be used due to the relatively small size and low weight of the flywheel (by a simultaneous small reduction in battery size).

From another post on this site we know that the diesel engine in this contemporary version will be replaced by the new gasoline 4-cylinder engine for some markets. Another option, which has already been mentioned by a Volvo executive, is (of course) the new 4-cylinder diesel engine as a replacement for the contemporary 5-cylinder engine. The gasoline engine for the V60 hybrid develops 238 hp and the diesel engines can provide up to ~230 hp (we do not know which version Volvo will choose). Both engines are from the new Drive-E family (called VEA during the development phase) and share many components. With more powerful engines, the R-Design features suits the concept very well.

Volvo have a different approach than, e.g. Toyota, for their hybrids, since they provide much more power and driveability, including 4-wheel drive. Presumably, this will be a smaller niche but I am still surprised that Volvo rank so high in EU sales. In contrast, the Prius plug-in does not sell at all in Europe.

http://www.greencarcongress.com/2014/04/20140416-volvo.html
http://www.greencarcongress.com/2014/02/20140225-volvo.html