The Volkswagen Arteon made its U.S. debut back in 2019 as a successor to VW’s departed 2008 to 2017 CC, a style-conscious sedan whose initials stood for “comfort coupe.” Like the CC, the Arteon is a style standout, with sleek Audi-esque lines. Unlike its pinched predecessor, it’s as functional as it is pretty, with crossover-like cargo room and a comfy interior.  That utility telegraphs the car’s personality. Though dramatic to behold, it’s more of a junior luxury family cruiser than a sports sedan.

It’s also priced like a luxury car. The Arteon sits alongside the more humble-looking Passat in Volkswagen showrooms, and while both are family sedans, the base-model Arteon SE is $7,200 more expensive than the priciest Passat, at least to start. It’s also more expensive than the Hyundai Sonata N Line or Mazda6 Signature. Offered in three trims, the base SE starts at $38,190, including a $1,195 destination fee. The mid-level SEL R-Line and top-spec SEL Premium R-Line are even pricier, at $42,790 and $48,190, respectively.

The 2021 Volkswagen Arteon is gorgeous from almost any angle, with sleek fastback looks that house a vast cargo area thanks to its hatchback design. Volkswagen

This places the Arteon in rarified company, as the Premium R-Line is actually more expensive than some versions of the Audi A5 Sportback, a car whose shape it echoes. This may account for why VW sells six Passats for every Arteon. As with most popular-brand cars with luxury aspirations, the Arteon falls into a very small niche, but it does have plenty to recommend.

For 2021, Volkswagen has given the Arteon revised front styling, improved interior materials, standard wireless Apple CarPlay and Android Auto, adjustable ambient lighting and a digital instrument cluster. 

All Arteons, regardless of trim, come powered by a 268-horsepower turbocharged 2.0-liter four-cylinder engine paired with an eight-speed automatic transmission with front or all-wheel drive. On paper, that puts the Arteon well ahead of both the 250-horsepower Honda Accord 2.0T and the 201-horsepower Audi A5 Sportback 40 TFSI on power. But while the car has plenty of urge for in-town jaunts and highway cruising, it doesn’t do much to create an inspiring driving experience.

All Arteons are powered by a 268-horsepower, turbocharged 2.0-liter four-cylinder engine. It’s got plenty of power, but the Arteon strays towards the quiet and luxurious end of the driving spectrum rather sporty moves. Volkswagen

Acceleration is muted but smooth, and the car’s excellent sound deadening keeps out any harshness under heavy throttle. The Arteon’s ride is aided by a standard adaptive suspension system, which can be set to normal, comfort or sport modes for ideal handling. The car remains comfortable and planted in all three modes, and even with the large optional 20-inch wheels the adaptive suspension is easily able to deal with potholes and broken pavement. The Arteon treads a fine line between sportiness and comfort, but leans harder toward the latter.

The EPA rates the front-wheel drive Arteon at 22 mpg city, 32 highway, and 25 mpg combined, with all-wheel drive models losing 1-2 mpg in each measure. That’s a little below average for popular-brand midsize sedans and slightly behind the A5 Sportback, but ahead of another popular-brand luxury fastback, the Kia Stinger.

Though solidly constructed with upscale materials, the Arteon’s interior lacks the visual appeal that makes its exterior so compelling. It’s a relatively plain design compared to some less-expensive cars, including the Kia K5. The front seats are deep and well-padded, and standard seat heating is a nice touch on cold mornings. 

 The Arteon’s interior is a very comfortable place, with lots of tech features, but it isn’t as visually compelling as the car’s sexy exterior. Volkswagen

In back, leg room rivals the very roomy Honda Accord and nearly ties the full-size Toyota Avalon. Despite its seductive roofline, the Arteon maintains a healthy level of rear head room, and parents will find no hassle fitting car seats or loading kids in and out. 

That roofline hides a hatchback, which brings crossover-like space that few other midsize sedans can rival. Opening the hatch reveals 27.2 cubic-feet of space behind the rear seats, and folding them down yields 56.2 cubic-feet. That’s more than a Volvo XC40 and any other mainstream midsize sedan. The rest of the cabin carries a good amount of storage space with plenty of small item cubbies to keep everyone’s gear in check.

Even though Volkswagen’s infotainment system is among the most intuitive and easiest to use, the automaker continues to improve its responsiveness and usability. It runs flawlessly on the Arteon’s 8.0-inch touchscreen, standard across all trims, and the touch-sensitive steering wheel controls make using the system a breeze while the car is in motion.

 Rear seat room is enormous, rivalling the bigger-on-the-outside Toyota Avalon for leg room, and it feels open an airy thanks to the well-designed greenhouse. Volkswagen

The base Arteon SE comes standard with 18-inch wheels, automatic headlights, LED headlights and taillights, LED daytime running lights, heated front seats, leatherette upholstery, power lumbar supports, navigation and voice controls, Apple CarPlay and Android Auto, USB-C inputs, SiriusXM radio, blind spot warnings, rear cross-traffic alerts and pedestrian monitoring.

The two higher trims add a variety of luxury touches. The SEL R-Line builds on the SE with 19-inch wheels, a panoramic sunroof, R-Line badging, Nappa leather upholstery, adaptive cruise control, dynamic road sign information, wireless device charging, automatic high beams, lane assist, park distance control and remote start. The SEL Premium R-Line gets all-wheel drive, 20-inch wheels, a hands-free hatch lid, adaptive front lighting, heated rear outboard seats, ventilated front seats, forward collision warnings with automatic emergency braking and an overhead-view 360-degree camera system. 

 Midsize hatchbacks are rare, and now that the Buick Regal Sportback is no longer offered, the Arteon has a class-dominating 27.2 cubic-feet of cargo room under its hatch, with up to 56.2 cubic-feet of cargo space with the rear seats folded. Volkswagen

IIHS gives the 2021 Arteon a Top Safety Pick rating, though it hasn’t been crash-tested yet by NHTSA. IIHS’s rating is for models equipped with the R-Line’s LED headlamps, but all versions of the Arteon did well in IIHS’s crash evaluations. The car also carries a decent list of safety gear that includes standard blind spot monitoring, rear cross-traffic alerts, lane departure and lane keeping assist, with more systems optional.

Even without satisfying acceleration or a sporty driving experience, the Arteon is a composed driver that offers lots of room, style, and technology. It’s just a question of whether buyers view it as a costly mainstream sedan or a luxury machine, and how much they value premium branding.