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.

With no On/Off switch, the driver is not in control of whether the car is on or off, and there is no way to turn the car fully off when you leave it, which will be unacceptable to some intenders. Driven briefly, the EX40 dual-motor BEV accelerates with extreme vigour, in virtual silence. Despite all-wheel drive, there is significant torque-steer while accelerating hard. Steering is nicely weighted, precise and holds its line well on the highway. Ride and handling are very well resolved. Volvo notes that the EX40 was purpose-built to be an electric car, The battery pack is located low in the car, with cabin and cargo space unaltered from the conventional XC40. The front seats are very comfortable and the driving position is excellent. The rear seat has enough room but the bases of the front seats contact the shins of rear seat riders in an unpleasant way. The driver faces a digital display that is configurable, but its controls hamper interaction with it. The Google-based navigation system works quite well and a vast array of radio stations are available. The Harmon-Kardon audio systems delivers pleasing sounds. For its full electric cars, Volvo stresses sustainability of all the components of the EX40 and EC40, and knows where all the elements of the battery pack are sourced from.

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 battery pack of the EX40 BEV produces 408 horsepower and 359 kilometres in range under ideal conditions. The range is unimpressive when compared with the 531 range of the Tesla Y long-range dual motor model. Volvo claim that their car can take on an 80 percent charge in 45 minutes using a DC fast charge portal. The massive horsepower available is really beyond what is practical or necessary and it might have been a better strategy to devote more of the battery pack to range rather than superfluous acceleration.

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.