With the introduction of the redesigned 2018 Volvo XC60, the Swedish automaker now has a modern, up-to-date offering to compete in the compact luxury SUV category. The current XC60, a bit long in the tooth, is selling at a discount.

Styled like a baby Volvo XC90, the new XC60 will be available with a choice of three engines, each mated to an eight-speed automatic and available with all-wheel drive. Preliminary specifications for the U.S. market show the base XC60 T5 features a 2.0-liter turbocharged four-cylinder engine that makes 250 horsepower. The XC60 T6 uses a 2.0-liter turbocharged, supercharged four-cylinder with a preliminary rating of 316 hp.

Volvo claims a 0-60 mph acceleration time of 6.4 seconds for the T5 and 5.6 seconds for the T6. In our test of the larger XC90, we got 20 mpg overall with the T6 engine. In this smaller vehicle, it should prove more efficient.

The top model is the T8, which is a plug-in hybrid that uses the turbocharged, supercharged four-cylinder to drive the front wheels. The rear wheels are propelled by an electric motor. Total system output is approximately 378 hp from the gasoline engine and electric motor. The T8 uses a lithium-ion battery, and Volvo claims a charge time of 2.5 hours on a 240-volt connector. 

2018 Volvo XC60 SUV interior

The 2018 Volvo XC60 is about 2 inches longer than the current one, with a wheelbase that's about 3.5 inches longer. Height has dropped about 2 inches, from just over 67 inches to just over 65 inches for the new XC60.

The cabin of the XC60 looks very much like that of the XC90, down to the large touch-screen infotainment system that dominates the center of the dashboard. We liked the quiet, plush, and modern interior of the Volvo XC90 we tested, but found the infotainment system unintuitive and frustrating to use.

In our evaluation of the current XC60, we found the cabin well-constructed but snug, particularly in terms of rear legroom. According to Volvo’s figures, front passenger shoulder room has grown by almost 2 inches, with rear shoulder room about 1.5 inches greater in the new XC60. It seems that much of that wheelbase length has gone to the rear seats. Volvo says that rear legroom is 38 inches, which is about 1.5 inches more than that of the current XC60. Curiously, cargo length has decreased in the new XC60, as has the width of the luggage compartment between the wheels. 

2018 Volvo XC60 SUV front

Learn more about advanced safety features.

Volvo calls its advanced safety system City Safety, and it encompasses both low- and high-speed automatic emergency braking. Some new features being added to the system are debuting in the 2018 Volvo XC60. Steer Assist will work with other parts of the City Safety system to avoid obstacles in the road ahead. Oncoming Lane Mitigation will alert drivers who have wandered out of their lane and then guide the XC60 back into the correct lane to avoid oncoming vehicles. And Volvo’s blind-spot warning system will use the Steer Assist capabilities to lower the chances of having a collision when changing lanes in the XC60. There's no word yet on which features are standard or optional.

Volvo hasn’t released an on-sale date for the 2018 Volvo XC60, which is set to go into production in mid-April at its Torslanda plant in Sweden.