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Arrival: 2021 Volvo XC40 T5 AWD (R-Design)

EPA City/Hwy/Comb Fuel Econ

22/30/25 mpg

“Charming design? Check. Lots of features? Check. Fun to drive? Can’t wait to see.”
Mark Rechtin

Base Price $41,945 As Tested $44,890

The tricky thing when trying to establish your brand as a player in the luxury stratosphere is pushing yourself past merely premium accoutrement. This is what confronts marketers from Acura, Buick, Genesis, Infiniti, and Volvo when proving bona fides against established German luxury.

Volvo has long produced sturdy premium vehicles with just enough elegance to justify the higher purchase price over a loaded vehicle from a mainstream brand. But now we’re seeing vehicles from Gothenburg such as the S90 and V90 (and from what we hear, the XC90 coming next year) that place Volvo firmly on the luxury shopping list against the dominant German brands.

Enter the XC40, a spritely subcompact SUV that puts Volvo back into its premium-mentality comfort zone. But the Germans have been swimming downmarket and brought the fight for budget-luxury shoppers to Volvo’s door with vehicles like the Mercedes-Benz GLA, Audi Q3, and BMW X1. So who builds the better product—a longtime premium automaker playing in its well-established sandbox, or the true luxury brands looking to expand their presence?

Well, we have a year to find out, as we just took delivery of our charming long-term XC40 T5 AWD R-Design.

Base XC40 MSRPs start as low as $34,795. But we got ours loaded up with enough goodies to push the sticker to an as-tested $44,890. What did that extra 10 grand get us?

The “T5” code means a 2.0-liter turbocharged four-banger that cranks out 248 hp and 258 lb-ft (up from 187 and 221 in the base T4), mated to an eight-speed automatic and all-wheel drive. The suspension is a front MacPherson strut and rear multilink setup, riding on 19-inch aluminum wheels. The R-Design boasts a “sport chassis” setup, which has stiffer shocks and springs than the standard “dynamic” setup. We decided not to spring for the Four-C active chassis setup.

What else does R-Design get you? Some upgrades in materials, such as a laminated moonroof, a different front grille design, leather steering wheel and shift knob, Volvo-branded tread plates in the front door sills, and snazzier gas and brake pedals. There are also some practical add-ons, such as keyless locks, a hands-free tailgate, integrated roof rails, dual-zone climate control, and HomeLink garage door controls.

The driver sees a 12.3-inch digital instrument panel that also has quick-view displays from the trip computer, map, or radio. The center waterfall has Volvo’s ubiquitous 9.0-inch Sensus Connect infotainment screen with Apple CarPlay and Android Auto, as well as Bluetooth connectivity. It also serves as a Wi-Fi hot spot. Front and rear occupants each get two USB ports. A trial subscription to SiriusXM satellite radio blasts through the 650-watt, 13-speaker Harman Kardon stereo.

Our XC40 also comes with the $1,300 Advanced package, which provides a 360-degree surround-view camera, 12-volt outlet in the cargo area, inductive phone charging, adaptive cruise control, and high-pressure headlight cleaning. I’d say that’s a well-priced set of features.

As for safety, XC40 adds the usual blind-spot and lane departure warnings but then brings post-collision automatic braking, as well as the City Safety system, which can

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