2023 Volvo XC40 Review: The Right Choice Is Crystal-Clear

Luxury, reassurance, and Swedish style: the 2023 Volvo XC40 may not reinvent the wheel, but that's not to say it's lacking appeal from behind it. A modicum of electrification gives the XC40 a little extra zip, but at its core, this is about the combination of active safety tech, a quality cabin, and whatever the Swedes say instead of "je ne sais quoi" to capture the five-seater's undeniable charms.

Volvo's smallest SUV in the U.S. won't be its smallest for much longer, though. The upcoming launch of the Volvo EX30 will bring a compact, all-electric crossover to the market, designed as an EV from the ground-up and boasting all the cabin flexibility such a platform can enable. With the automaker already committing to going electric-only in the years to come, you might wonder where that leaves the XC40 B5.

The answer is — as is so often the way — "it's complicated."

When Volvo launched the XC40 back in 2017, it made particular note of how the subcompact luxury crossover SUV was designed with multiple drivetrain options in mind. As well as coming in front-wheel drive and all-wheel drive gas flavors, the XC40 Recharge gave the automaker its first all-electric model in the U.S. That switched out the internal combustion in favor of electric motors, and remains appealing, even if its range doesn't put it at the top of its class.

For the U.S., only a single gas engine option remains — a 2.0-liter turbocharged four-cylinder — though Volvo offers it in a choice of two overall configurations. The XC40 B4 is the most affordable, from $37,645 (plus 1,095 destination), with front-wheel drive. The XC40 B5 upgrades to all-wheel drive, and starts at $39,645 (plus destination).

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It's a mild-hybrid engine, primarily relying on gasoline power, but adding a small battery and 13 horsepower electric motor to improve fuel economy and throw in a little extra pep. In the front-wheel drive XC40, you're looking at 194 horsepower and 221 pound-feet of torque. That rises to 247 horsepower and 258 pound-feet of torque in the all-wheel drive XC40. Either way, Volvo combines it with an eight-speed automatic transmission. 0-60 mph arrives in 8.1 seconds for the FWD SUV, but the AWD version trims that to 6.1 seconds.

In keeping with Volvo's premium leanings for the XC40, even the base Core trim is well-equipped. It gets a 12-inch digital cluster and 9-inch infotainment screen running Android Automotive OS, with blind spot warnings and rear cross-traffic alerts, lane-keeping assistance, rear parking sensors, and Apple CarPlay. Dual-zone climate control, 18-inch wheels, and a power tailgate are also standard.

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The Plus trim — in return for $4,400 extra — adds a panoramic moonroof, hands-free trunk, front and rear parking assistance, a power outlet and foldable load floor in the trunk, nicer front seats, and extra glitter inside and out. That includes a high-gloss front grille with chrome frame, matching shiny side window trim, driftwood trim to the dashboard, a fancier steering wheel, and a crystal gear selector knob from Scandinavian glass specialist Orrefors.

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Ask not whether you truly need a crystal knob, and instead marvel at the XC40 Ultimate trim ($8,150 on top of the Core trim). It adds a bird's eye view camera, adaptive cruise control and Volvo Pilot Assist, fog lamps, and parking assistance for the front, rear, and sides. 19-inch wheels are standard, plus high-gloss grille, window trim, and roof rails. A Harman Kardon audio system includes a subwoofer, there's a wireless phone charger, and the cabin gets aluminum trim.

By the time you add the 20-inch, 5-spoke black diamond cut alloy wheels, Pixel LED headlights, and the Climate Package (which adds heating to the steering wheel and rear seats) to this particular XC40 B5 AWD Ultimate, you're looking at $50,190 including destination. That is a whole lot for an SUV of this size.

Certainly, the Volvo's cabin feels high-quality. With the charcoal leather interior, it's a dark place to spend time, and I found myself missing the glowing cabin trim Volvo's Recharge models use. There's a blond leather option that should be much cheerier, if a little less practical over the long-term.

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Everything feels sturdy and generally pleasant to the touch, though. The parallels with Volvo's more expensive models are clear, from the overall dashboard aesthetic, to the supremely comfortable seats and reassuring switchgear. Nothing feels over-designed or forced, and Volvo retains physical controls for the essentials like volume and media control.

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Sadly, the old drive mode controller has been abandoned, and you'll find settings to access things like off-road mode in the infotainment screen. However, the simple and clear steering wheel buttons are a joy in comparison to the overloaded clusters that some rivals suffer from. 

Space in both rows is solid, too, both for adult headroom and legroom, while there's 16 cubic-feet of trunk space that expands to 57.5 cubic-feet with the rear seats folded. Both FWD and AWD versions can tow up to 3,500 pounds, a more than healthy amount for the segment.

Volvo's infotainment may bear a passing resemblance to the old Sensus system it launched on the XC90, but underneath, it's actually entirely different. Based on Google's Android Automotive OS (AAOS), it includes native Google Maps and Google Assistant support — voice control is much improved over the old system — along with access to the Google Play Store, and the handful of third-party apps that currently play nicely with AAOS.

Those include Spotify and some other media streaming apps, along with a web browser. Generally, it's all pretty intuitive, though there are times — like pulling up the reversing cameras — where things just aren't quite as swift or glitch-free as you'd like them to be. Each row gets a pair of USB-C ports, though you'll need one of them for Apple CarPlay, as that's not wireless in the XC40.

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As for Pilot Assist, Volvo's hands-on driver assistance package combines adaptive cruise control and lane-keeping. It's available on highways, and works solidly, though rival systems with hands-free support are more relaxing at this point.

That's not to say the XC40 is a drag to drive. The more potent all-wheel drive version is nimble and poised; Volvo doesn't offer air suspension or anything so complex, but the crossover's standard setup is generally free of body roll. It's perky and easy to toss about, with a choice of steering weighting (that's still fairly light, even in its heaviest setting).

This isn't a sports SUV, though, and if you want Volvo's most eager performance you'll have to look to the XC40 Recharge (or its curvaceous C40 Recharge cousin). Even in single-motor form, the 2024 XC40 Recharge RWD will do the 0-60 mph dash in 4.6 seconds, Volvo says.

I had bigger hopes for Volvo's mild hybrid technology, frankly. The EPA says you should see 23 mpg in the city, 30 mpg on the highway, and 26 mpg combined. My own mixed driving saw almost 30 mpg. That compares reasonably with non-hybrid rivals like the BMW X2 xDrive28i and Mercedes-Benz GLA 250 4MATIC. Problem is, rival hybrids are doing 10+ points better; a Lexus UX 250h AWD, for example, is rated for 39 mpg combined.

The XC40 is a good small SUV; a really good one, in fact. It's refined, well-equipped, practical, and stylish in a way which I think will age more gracefully than a lot of rivals. Skip the top-spec Ultimate trim and opt for the mid-tier Plus, meanwhile, and it's reasonably affordable for the segment, too.

All the same, it's hard not to be swayed by the XC40 Recharge. Side by side, the gas version of the crossover pales in comparison to the electric model's refinement and performance. Yes, you'll need access to charging infrastructure, but I suspect the XC40 Recharge RWD's 293 miles of range will be more than sufficient for the target audience here.

Volvo clearly understands how competitive electric vehicles are in this particular niche: the upcoming EX30 is evidence of that. If you're determined to go with internal combustion, though, there's still a lot to like about the XC40 B5 package overall. Just make sure to budget for gas alongside that swanky glass gear shifter.