2023 Volvo XC60

Compact luxury SUVs are hot commodities, and the Volvo XC60 has been a prominent competitor in this segment for years. Positioned midway in the Volvo SUV hierarchy, the XC60 is currently in its second generation and was treated to new engines last year. The 2023 model year sees further updates, with minor cosmetic improvements and a range-wide renaming. The XC60 discarded its older non-hybrid engines for 48-volt mild-hybrid powertrains in 2022 to improve efficiency. All models use the same basic 2.0-liter turbocharged four-cylinder engine, boosted to different levels to achieve different outputs.

The B5 has 247 horsepower, while the B6 has 295 hp. The same eight-speed automatic gearbox is mated to both engines. B5 models are FWD as standard but offer AWD as an option, while B6 models are all equipped with AWD. Although it's a very competent compact premium crossover, the Volvo XC60 faces tough competitors in the Audi Q5, BMW X3, and Mercedes-Benz GLC, while off-beat alternatives such as the Genesis GV70 and Alfa Romeo Stelvio should also be considered in this market segment. Do the latest round of updates and the trim realignment keep it relevant in the face of such formidable competition?

The price of the 2023 Volvo XC60 reflects its premium status. The price of the base trim B5 Core starts at $43,650, growing to $47,900 for the Plus, and $53,700 for the Ultimate. All-wheel drive can be added to any of the B5 trims for an extra $2,300. If you want the stronger B6 engine, you can only get it on the Ultimate with standard AWD at an additional premium of $5,550 for a total of $59,250. The plug-in hybrid T8 starts just below the top-tier gas trims, with the Core priced at $57,400. The Plus ups the ante to $61,650, and the Ultimate asks for $67,150. Last but definitely not least is the T8 Polestar Engineered, embodying the best that Volvo has to offer. It has a starting sticker price of $74,350. All of these are MSRPs for the Volvo XC60 and do not include tax, registrations, or licensing fees, nor the $1,095 destination charge.

Even in base B5 FWD form, the Volvo is adequately quick, with 247 hp and 258 lb-ft from its 2.0-liter turbocharged four-cylinder engine with 48-volt mild-hybrid system getting it from 0-60 mph in 6.6 seconds - or 6.5 for the AWD. The B6, which can only be had in the top-level Ultimate trim, adds an electric supercharger to increase the outputs to 295 hp and 310 lb-ft and will get to 60 mph in 5.9 seconds. Both engines are perfectly suitable for normal driving, which makes it difficult to justify the substantial price premium for the B6. Overtaking performance is effortless and confident and, while acceleration from a standstill isn't outstanding, there's plenty of spare power on tap once on the move.

The Volvo XC60's handling is much as you'd expect from an SUV in this category: Safe and secure, but not exhilarating. The front end goes where it's pointed, and ultimate grip levels are high, but there is almost no feel through the steering wheel, and the driver is constantly reminded that the XC60 is a heavy vehicle with an elevated center of gravity. This wouldn't matter much to most buyers in this segment, but an Alfa Stelvio will certainly induce more grins from the driver on a twisty road, and BMW X3 is more lively to drive as well. The XC60 takes the middle ground, which makes its unsettled ride quality when rolling on the available larger wheels somewhat disappointing.

The Volvo XC60 stands apart from its competitors in a number of areas, most notable is its cabin space, which is more generous than most competitors could offer, and its full house of safety equipment. While the handling dynamics on offer are a bit bland, there's enough compensation to be found in the XC60's sumptuous seats, effortless driving experience, plush cabin, and styling that is aging very gracefully. It's not the ultimate sporty family SUV, but it is one of the most well-rounded offerings in its class, and deserves serious consideration on its own merits. That said, it fails to topple class leaders such as the BMW X3 and Genesis GV70.

Some people would skip the starter B5 as it isn't all that powerful, but we'd say that 247 hp and a sprint to 60 mph in 6.6 seconds is adequate for most people. The best B5 trim is definitely the Plus, because it adds desirable features such as leather upholstery, 19-inch alloys, adaptive cruise control, and a surround-view camera. The B6 isn't that much faster but if you absolutely must have more power, keep in mind you have to take AWD and will end up paying close to $60k for it. It does have some nice extras, but the ride is borderline firm on the 20s and we'd rather have a B5 Plus with the Harman Kardon audio system for under $50k.

The T8 is definitely an option if you'd like a hybrid and don't mind paying extra. All of these come standard with AWD. From there, we'd suggest just going all in on the trims and splurging on the Ultimate. It just has many desirable features, like heated front seats, an upgraded sound system, and more standard safety features in the form of a surround-view camera and a head-up display. The Bowers & Wilkins sound system is nice to have, though by no means necessary - and does add over $3k to the cost.