My wife insists it’s an “age thing,” and I will admit it’s not always easy to stick with the plot, but Volvo doesn’t make it effortless. In the long run, it might not amount to much, the Chinese-owned Swedish manufacturer dropping the Recharge designation from all its electric vehicles and plug-in hybrids. The thing is, it was only a few years ago that the Recharge name was added, so this reversal without an explanation seems a bit confusing.
A further complication: What would have been designated XC60 Recharge last year is now gone in favour of a T8 suffix. What I’m driving is a 2025 Volvo XC60 T8 PHEV Ultra, Ultra having replaced the Ultimate trim for the new model year. Except, right next to the T8 badge on the liftgate is a tiny nameplate that says Polestar Engineered — not Ultra — which designates the tester as equipped with a $1,605 accessory/option known as Polestar Optimization. A trivial thing, you might think, other than the fact it indicates the XC60 is equipped with a software-based performance package that improves throttle response, transmission off-throttle response and gear shift precision, and promotes faster gear changes.
Wade through all that and the end result is a more or less unchanged, compact-sized crossover (4,708 mm in length), one that is nonetheless quick and comes with a rather shocking price tag. Read on:
What powers the 2025 Volvo XC60 T8?
The base, mild hybrid XC60 combines a turbocharged 2.0-litre four-cylinder with a 48-volt hybrid system to make 247 horsepower and 266 lb-ft of torque. The plug-in hybrid XC60 T8 sees the 2.0L four paired with both a turbocharger and a supercharger, which is then hooked up to a pair of electric motors (one up front, a more powerful one at the back). This combination of 312-hp engine and electric motors combine for 455 hp and 523 lb-ft of torque, which makes for a quick ride, albeit a bit growly when pushed hard — Volvo claims the crossover will reach 100 km/h in just 4.8 seconds. However, if frugality rather than speed is more of a priority, it can also achieve 58 kilometres of electric driving on a fully charged lithium-ion battery.
Forking over the biggest bucks for the T8 with the Polestar Optimization gains a chassis setup that includes Öhlins shock absorbers working with the Polestar Engineered front and rear springs to provide what Volvo insists will be a composed ride with less roll and more grip when cornering. The shocks’ Dual Flow Valve technology means each shock absorber can react more quickly, allowing the wheel and tire to regain road contact instantly after passing a bump or a pothole without losing traction. Very stylish Polestar Engineered 21-inch forged wheels are also part of the equation, reducing un-sprung weight by up to 15 per cent.
2025 Volvo XC60 T8 Efficiency
With the T8 powertrain, the 2025 Volvo XC60 is rated by NRCan at 8.5 L/100 in the city, 8.5 L/100 km on the highway, and 8.5 in combined driving, the very model of consistency. This will result in an estimated annual fuel cost of $1,853. Together, the gas and battery systems will average 3.5 Le/100 km. Unfortunately, the engine requires pricier 91 octane.
2025 Volvo XC60 T8 Cabin
The term “Swedish minimalism” has become almost cliché as applied to the XC60, if it weren’t for the fact it also remains accurate when it comes to the five-seat crossover’s cabin layout. Still, I prefer “understated” as a descriptor, both externally and internally. Understated does not mean spartan, however. And when it comes to the T8 tester, Volvo did not skimp on amenities or materials, starting with stitched black leather set off with open-pore wood and metal mesh pieces. Then there’s the gear shift by Orrefors, the Swedish glass makers handcrafting the piece out of solid crystal. Very fancy. The front seats are well bolstered and support in all the right places, with heat, ventilation, massage (optional) and thigh extension offered. The heated steering wheel has three settings and warms the entire wheel. Love it.
Thankfully, Volvo did away with the “double tap” shifter, one that required two pulls of the stubby lever, the first putting the eight-speed transmission into neutral, the second into the required gear. Another thing gone is Volvo’s Sensus infotainment system, the screen operating like a tablet, with the usual swipe, poke and pinch motions to activate the XC60’s multiple functions. With the 2022 model, it was replaced by a more modern Google Android-based interface. The screen is the same 9.0-inch tablet shape, but the software offers more personalization options, voice controls courtesy of Google Assistant, and navigation via Google Maps. Too many car controls require the use of the screen, but at least it’s quick. Not that the standard Harman/Kardon premium sound system is lacking in ear-blasting decibels, but true audiophiles will fork over $3,750 Bowers & Wilkins High Fidelity system.
There are 613 litres of cargo room behind the rear seats. If more capacity is needed, the rear seat backrests fold separately in two sections, providing a flat load floor and 1,410 litres for bigger items.
What is the 2025 XC60 T8 like to drive?
I last drove the XC60 plug-in in the middle of the pandemic, and just a couple of months before Volvo refreshed the crossover for the 2022 model year. There have obviously been some improvements to the powertrain since that drive. One is that the tester has upped its electric range, 58 kilometres instead of 35. The second is an appreciable increase in net horsepower — 455 hp versus 400 for the Recharge Inscription Expression version I tested back in 2021 (415 for the Polestar Engineered).
What is at play is the serenity that comes from driving the XC60. The crossover, despite who owns the company, remains clearly European in the way it “feels.” From past experience I would have said it lacks a portion of the sporting dynamism its primary German rivals (Audi Q5, BMW X3, Mercedes GLC, Porsche Macan) engender. OK, in base form it isn’t as connected to the road, with that minute loss offset by some very nice, almost understated, Swedish attributes, which is to say it’s solid, quiet and comfortable.
However, being Polestar “optimized” alters the balance. The standard setup for the T8 PHEV Ultra is the four-C (Continuously Controlled Chassis Concept) air suspension. The tester was fitted with the optional ($2,350) “active” air suspension, including the aforementioned Öhlins shock absorbers. So, there is less body roll, less floating over the usual tarmac bumps and humps. The ride has a sharper quality, though not to the point of ever being harsh. The steering isn’t lazy. I like this XC60, to the point where I would happily drive cross-country, secure in the belief that, at the end of the trip, I wouldn’t feel like I had gone three rounds with Mike Tyson (out of shape or not).
What does the 2025 Volvo XC60 T8 cost?
Let’s ease into it. The 2025 XC60 starts at $58,889 for the base Core trim and B5 engine. Moving up to the Plus trim is another $6,500, $12,650 for the Ultra. T8 plug-ins start at $63,389 for the Core, another $16,700 for the Plus. The Ultra costs $82,750 before the options, which added another $10,860 to the cost of the tester (a total of $93,610 before freight and PDI).
Final Thoughts
My grandfather used to talk about life in Edwardian England, where the “lower” classes were strenuously discouraged to “rise above their station.” My initial thought was that Volvo had seriously exceeded its station with a $93K MSRP for the fully loaded XC60 T8 PHEV. Yes, Volvo is an upscale automaker, but this is (or was) luxury car pricing. The tester is pricier than a loaded BMW X3 or Audi Q5, though neither vehicle is offered as a PHEV. A top trim, non-EV Porsche Macan is about the same price; Macan EVs (not a PHEV) can be significantly more. The closest PHEV competitors are the Lexus RX 450h as well as the new Mercedes GLC 350e 4Matic; the latter less expensive by about $10K on the high end, but not nearly as powerful.
That said, Volvo does have a favourable reputation for safety. The National Highway Traffic Safety Administration (NHTSA) in the US gives the crossover a Five Star overall safety rating. The 2024 model also earned a Top Safety Pick award from the Insurance Institute for Highway Safety (IIHS).
And from my standpoint, the tester was a joy to drive, ticking off a bunch of feels — smooth, quiet, quick, safe, comfortable, generously equipped, good looking. Yes, I still struggle with the T8 Ultra’s pricing. I believe I could live without with the T8 tester’s options, pocketing the $10K+, secure that the essentials are all there.
I don’t know if Volvo is rethinking its plans to being a fully electric car company by 2030 — given increasing consumer frustration over EV pricing/range/infrastructure, I would — having models like the XC60 T8 as a bridge is just prudent marketing sense. Aging gracefully (the second-generation XC60 has been with us since 2017), the T8 remains a very good bridge.
Pros
✔ Powerful (in an understated way)
✔ Good handling dynamics
✔ Comfortable and quiet
Cons
✘ Aging (albeit gracefully)
✘ Too many cabin functions rely on touchscreen
✘ Pricey, especially when optioned out
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