2021 Volvo XC40

There are many small luxury SUVs around these days, but given their increased emphasis on practicality, not all of these entries necessarily look or feel all that luxurious. The Volvo XC40 is not among them. The bite-sized Swede beautifully translates the Scandinavian pleasures of Volvo’s larger SUVs into a useful package that straddles the line between compact and subcompact.

The XC40 looks born to chauffeur, shop or lunch in an affluent neighborhood. A finely formed clamshell hood kicks things off in style. Along the sides, creased sheetmetal rises for a perfect marriage with a contrasting black roof in R-Design versions. Volvo’s “Thor’s Hammer” taillamps curl crimson LED’s along the tailgate. This Volvo is a looker from any angle. 

Sophistication continues inside, including shapely air vents worthy of an art gallery. Sculpted, orthopedically correct seats are a Volvo signature. Even Momentum models, starting from $34,795, including a $1,095 destination fee, avoid any semblance of cost-cutting. 

The sporty R-Design starts from $40,045, adding niceties such as 19-inch alloy wheels (with 20-inch wheels optional), black roof rails, Nappa leather upholstery and grid pattern aluminum “Deco” trim. Lava-orange door inserts pair smartly with matching $100 floor mats for more youthful flair. Inscription models, from $40,545, advance a luxury theme with chrome trim, unique wheel patterns and a range of leather options, including striking amber, red or blond hides. 2021 also sees the introduction of a fully electric version, the $55,085 XC40 Recharge, but we review that model separately.

With contemporary style covered, Volvo turned to thoughtful design and packaging. For an SUV that’s 3.7-inches shorter than a Honda Civic, the Volvo feels surprisingly roomy in both passenger and cargo space. Officially, there are 20.7 cubic feet behind the second row, and 47 cubic feet in total, shy of the Audi Q3 or BMW’s X1. But fold those second-row seats, accomplished in a smooth one-handed operation, and one would swear the Volvo was one-size-larger: The XC40 swallows suitcases and bulky items like a champ.  

Though smaller on the outside, the XC40 has matches the Q3 for rear leg room and is only marginally smaller than the X1. It’s a roomy feeling experience. An enormous panoramic sunroof heightens the feel of wide-open space inside, though it costs $1,475 extra.

Door and cubby storage essentially doubles the space of its competitors. Eliminating door-mounted speakers in favor of a center subwoofer allows door pockets large enough to hold a laptop and tablet, or a pair of huge water bottles. Ingenious storage includes a driver’s stash spot in the front seat cushion and hidden underfloor storage. A folding hook below the glovebox supports a grocery bag or purse. And the center console’s removable garbage bin is a Eureka moment: Why doesn’t every SUV have one? 

A $1,300 Advance Package adds Volvo’s semi-autonomous Pilot Assist system, which mates adaptive cruise control and a gentle steering assist to keep the Volvo centered in its lane on highways. That Advance group also includes wireless charging, a 360-degree surround camera and a 12-volt outlet. Strangely in a vehicle in this class, heated front seats cost extra, and are part of a $700 package that also sees heating added to the steering wheel and windshield wipers.

Volvo’s Sensus infotainment system is one instance where XC40 function trails its high-design form: The 9.0 inch, tablet-style screen brings handsome graphics and generous features, but it’s sometimes laggy in operation. Oddly arranged submenus and miniature icons can make the interface difficult to use while driving, but things become more natural with practice. A sharp, 12-inch digital gauge cluster presents data to drivers. 

The driving itself is a breeze. The XC40 isn’t the sportiest crossover in its crowd—you’ll want an X1 for that —but the Volvo feels delightful in its own way, with a lithe, limber feel and a spunky personality. Steering is light, and transmits almost no road feel; not a problem for SUV fans who prefer comfort above all. The optional 20-inch wheels transmit more harshness into the cabin than the standard 18-inch or available 19-inch choices. 

Refreshingly, all three trim levels — Momentum, R-Design and Inscription — offer shoppers a choice between two powertrains: The “T4” turbocharged, 2.0-liter four-cylinder with front-wheel drive, 187 horsepower and 221 pound-feet of torque; or “T5” AWD with 248 horsepower and 258 pound-feet from a boosted version of the same engine. Take our advice: The T5’s addition of all-wheel traction and 66 horsepower is worth every penny of the $2,000 upcharge. 

The four-cylinder engine isn’t the smoothest in its segment, so the 187-horsepower version spends more time working hard to motivate the XC40. That tends to amplify its somewhat coarse sound at higher engine speeds; even as the XC40 T4 takes its sweet time to 60 mph, in 8.4 seconds. The T5 models, by contrast, escort the XC40 from 0-60 mph in 6.1 seconds. The Volvo will tow up to 3,500 pounds with either powertrain, a rare capability among small luxury crossovers. 

All XC40’s get an eight-speed automatic transmission that operates with smooth aplomb. Once you’re in motion, that is. The too-stubby console shifter requires an initial tug into neutral, followed by a second tug to access Drive. That annoying two-step process makes it all too easy to get hung up in neutral, revving the engine and going nowhere. 

If the Volvo out-styles most small SUV rivals, it unfortunately also out-drinks them. The EPA credits the XC40 T5, optimistically, with 22/30 mpg in city and highway. (The front-drive T4 is rated at 23/32 mpg) But in our tests, the XC40 T5 struggled to top even 27 mpg on highway runs, 3 mpg below its official rating. 

Naturally, the Volvo covers every imaginable safety base, including standard City Safety collision mitigation that recognizes cars, pedestrians, cyclists and even large animals. Seats help reduce whiplash in collisions and offer “run-off-road” protection against spinal injuries should the XC40 leave the pavement. All told, the XC40 is as easy on the body as it is on the eyes.