The B5 2L turbo four provides enthusiastic performance and flexibility beyond what its posted horsepower suggests. The B5 engine is well matched to an eight-speed automatic transmission whose only fault is a gear selector that is difficult to use. While feather light and devoid of feel at low speeds, the steering of the XC40 firms up as speeds rise, is accurate and holds its line well at highway speeds. Ride and handling are both very competent and nicely sorted for the intended market. Though the instrumentation and main info screen on the XC40 are attractive and common to most Volvos, the touch screen that controls many functions is not initially user friendly. However, once basic settings are made, several of the screens can be virtually dismissed, with normally-accessed functions become less opaque over time. Seating up front is very comfortable and room is ample. Built on a different platform than other Volvos, the XC40, with very vertical sides and large windows, feels much airier than its shallow-windowed showroom mates. The rear seat is quite comfortable and has sufficient legroom for most adults. There is plenty of space for feet under the front seats but a hard ridge on the base of the front seat rubs uncomfortably against the shins of rear seat riders. Cargo space is ample. Cabin materials on high-end models, with elegant two-toning, supple leather, driftwood accents and scratchy fabric door inserts, are very attractive.

the XC40 is built on a new Compact Modular Architecture. The B5 engine is the sole conventional powertrain available. The XC40 looks different than other conventional Volvos but is a very space-efficient capsule. Volvo has re-purposed its attractive TFT (transistor film technology) dash gauges, large info screen and minor controls from the current lineup inside the new crossover. The newly-renamed EX40 BEV model went on sale during 2021 and was joined in 2022 by the also newly-named EC40 BEV, which is a four-door coupe CUV, in the German fashion. All three BEVs are offered in rear-wheel drive and dual-motor, all-wheel drive.

The base XC40, the B5 Core, with heated front seats, a power driver’s seat, a power tailgate and rear parking sonar, is nicely equipped. Moving up to the Plus trim adds leather seating, a panoramic sunroof, a power passenger seat, an Orrefors crystal shift knob, and a 360 degree camera system. The ultimate trim, called the Ultimate, includes active cruise control, a heated steering wheel, heated rear seats and a Harman-Kardon audio system. The fact that active cruise control is only offered on the top model of the XC40 is disappointing for a firm that built its reputation on safety.

The dual-motor, all-wheel drive versions of the EX40 cost $3550 (Core) and $2500 (Plus and Ultra) more than their rear-wheel drive equivalents.
The base Core trim is equipped with a forward collision warning, autonomous emergency braking, blind spot and rear cross traffic monitors, power tailgate, heated front seat, power front seat, and wireless cellphone charging. The Plus trim adds a 360 degree camera system, a large format roof, upgraded fabrics and a power passenger seat. The Ultra range-topper is equipped with a heated steering wheel, active cruise control, heated rear seats and a Harman-Kardon audio system. The Coupe is priced the same as the equivalent EX40. The EX40 and EC40 can trigger a federal government rebate or $5000 and (beginning in April again) a $7000 rebate from Quebec.

New car, not rated. Predicted reliability of the conventional XC40 is below average. Electrical glitches are to be expected. Unproven BEV powertrain. Short powertrain warranty. Leasing or an extended warranty from Volvo Canada are recommended.