Report: Volvo Drops Front-Drive Versions of XC40 and XC60

Matt Posky
by Matt Posky

Volvo is dropping front-wheel drive for the XC40 and XC60 crossovers for 2024. However, this also means the XC40 will lose the 2.0-liter B4 turbo (194 horsepower and 221 pound-feet of torque) and now have the B5 variant (247 hp and 258 pound-feet) as its singular powertrain. Since the XC60 comes exclusively with the B5 already, the only change is that front-wheel drive will be removed from the menu.


While the manufacturer hasn’t explained the decision, it’s not hard to guess why it has axed the FWD variants. Since Volvo plans on going all-electric in the years to come, further consolidation of its gasoline-powered vehicles makes a lot of sense. It’s also a safe bet that the front-drive versions of the XC40 and XC60 aren’t as popular.


Volvo is broadly considered a luxury brand and its clientele has shown a predictable willingness to be upsold. While your author believes front or rear-wheel drive is perfectly serviceable in most situations, consumers who have the money typically want all-wheel drive. This is especially on utility vehicles and is often the first thing people ask when hoping to get my opinion on a prospective vehicle purchase.


Undoubtedly aware of this, Volvo probably thinks it can reduce manufacturing costs while making sure the more expensive versions of the XC40 (below) and XC60 (above) remain available. Frankly, it doesn’t seem like much of a loss. Both vehicles lack personality with the meeker powertrains and adding all-wheel drive only reduced fuel-economy estimates by a single mpg on the XC60.

When reporting on the changes being made to Volvo’s smaller crossovers, Car and Driver also managed to confirm that the Volvo S60 Recharge Polestar Engineered will be dropped next year.


The performance sedan came with the 455-hp T8 plug-in-hybrid powertrain, adjustable Öhlins dampers, gold-painted Brembo brake calipers, gold seat belts, a unique set of wheels, and lots of little touches to differentiate itself from the standard S60.


Seeing one on the road is incredibly rare and all versions of the S60 have gotten less popular over the last few years. Volvo managed to sell a little over 15,500 examples in 2021 and just 5,277 units through all of 2022. Granted, that wasn’t a volume year for most manufacturers. But the sedan trades at about half the frequency of the XC60 and Volvo has seen fit to streamline production on the more popular model.


It doesn’t make sense to continue building Polestar variants nobody is buying, especially since the division is likewise going all-electric. While Polestar’s annual volume has been increasing, the brand has said the majority of those sales are the result of the battery-powered Polestar 2.

[Images: Volvo Cars]

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Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • Varezhka I have still yet to see a Malibu on the road that didn't have a rental sticker. So yeah, GM probably lost money on every one they sold but kept it to boost their CAFE numbers.I'm personally happy that I no longer have to dread being "upgraded" to a Maxima or a Malibu anymore. And thankfully Altima is also on its way out.
  • Tassos Under incompetent, affirmative action hire Mary Barra, GM has been shooting itself in the foot on a daily basis.Whether the Malibu cancellation has been one of these shootings is NOT obvious at all.GM should be run as a PROFITABLE BUSINESS and NOT as an outfit that satisfies everybody and his mother in law's pet preferences.IF the Malibu was UNPROFITABLE, it SHOULD be canceled.More generally, if its SEGMENT is Unprofitable, and HALF the makers cancel their midsize sedans, not only will it lead to the SURVIVAL OF THE FITTEST ones, but the survivors will obviously be more profitable if the LOSERS were kept being produced and the SMALL PIE of midsize sedans would yield slim pickings for every participant.SO NO, I APPROVE of the demise of the unprofitable Malibu, and hope Nissan does the same to the Altima, Hyundai with the SOnata, Mazda with the Mazda 6, and as many others as it takes to make the REMAINING players, like the Excellent, sporty Accord and the Bulletproof Reliable, cheap to maintain CAMRY, more profitable and affordable.
  • GregLocock Car companies can only really sell cars that people who are new car buyers will pay a profitable price for. As it turns out fewer and fewer new car buyers want sedans. Large sedans can be nice to drive, certainly, but the number of new car buyers (the only ones that matter in this discussion) are prepared to sacrifice steering and handling for more obvious things like passenger and cargo space, or even some attempt at off roading. We know US new car buyers don't really care about handling because they fell for FWD in large cars.
  • Slavuta Why is everybody sweating? Like sedans? - go buy one. Better - 2. Let CRV/RAV rust on the dealer lot. I have 3 sedans on the driveway. My neighbor - 2. Neighbors on each of our other side - 8 SUVs.
  • Theflyersfan With sedans, especially, I wonder how many of those sales are to rental fleets. With the exception of the Civic and Accord, there are still rows of sedans mixed in with the RAV4s at every airport rental lot. I doubt the breakdown in sales is publicly published, so who knows... GM isn't out of the sedan business - Cadillac exists and I can't believe I'm typing this but they are actually decent - and I think they are making a huge mistake, especially if there's an extended oil price hike (cough...Iran...cough) and people want smaller and hybrids. But if one is only tied to the quarterly shareholder reports and not trends and the big picture, bad decisions like this get made.
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