
Yes, the 2027 Volvo XC40 B5 AWD is staying in the US with a 2.0L turbo MHEV making 247 hp, standard AWD and EPA-rated 26 mpg combined, keeping safety and Scandinavian design without a plug.

The 2027 Volvo XC40 B5 AWD is staying on sale in the US as the mild-hybrid alternative to the EX40 electric. Volvo confirms the B5 AWD with 247 hp and standard all-wheel drive for 2027, while the B4 FWD will be discontinued for 2028.
It is the first-generation XC40, launched in 2019 and facelifted in 2022, now updated for 2026-2028. Target buyer is the first-time premium SUV shopper who wants top safety scores and a compact footprint for city use.
Direct competitors in the US market listed in the research are BMW X1 and X2, Audi Q3, Mercedes-Benz GLA and GLB, Lincoln Corsair and Acura ADX.
Specification | Information |
|---|---|
Trims US | B4 Core / Plus FWD 194 hp, B5 Core / Plus / Ultra AWD 247 hp |
Engine | 2.0L turbo 4-cyl B5 MHEV 48V |
Power | 247 hp |
Torque | 258 lb-ft |
Transmission | 8-speed automatic |
Drivetrain | AWD for B5, FWD for B4 |
0-60 mph | 6.1 seconds |
Top speed | 114 mph limited |
EPA MPG | 23 mpg city / 30 mpg highway / 26 mpg combined |
Cargo | 20.1 cu-ft seats up |
Dimensions | 174.8 in length, 106.4 in wheelbase |
Weight | ∼3,929 lbs |
Fuel tank | 14.2 gallons / 54 L |
MSRP US | B4 Core ~$39,900, B5 Core ~$42,600, B5 Ultra ~$51,250 |

The design stays Scandinavian and upright. Short overhangs, Thor’s Hammer LEDs and a boxy C-pillar keep visibility good and parking easy.
At 174.8 in long with a 106.4 in wheelbase, it fits the compact premium segment. Weight for the combustion AWD version is about 3,929 lbs. Width ranges from 73.3 to 73.7 in without mirrors.
The 2026 facelift brings a revised grille, lights and bumpers, plus a larger 11.2-inch Google system for 2028. No major size change, which preserves urban maneuverability.

Cabin space is a strong point for the segment. Front legroom is 40.9 in, rear legroom is 36.1 in based on metric conversion of 1,040 mm and 917 mm.
Material quality remains premium Scandinavian with soft-touch surfaces. Rear seats are upright but adult-friendly. Panoramic roof and 19 to 20-inch wheels depend on trim in the US.
Cargo is 20.1 cu-ft with seats up and around 46.9 to 50.6 cu-ft folded, based on 443 to 452 L and 1,328 to 1,432 L conversions. That is enough for two large suitcases without folding.

The infotainment uses a vertical 9 to 11.2-inch screen with Google Built-In. For 2028, Volvo adds Gemini AI. Expected connectivity includes wireless charger and 4 USB-C ports.
Standard ADAS package according to the research:

The US B5 uses a 2.0L turbo 4-cylinder MHEV with 247 hp and 258 lb-ft. Transmission is an 8-speed automatic. Traction is AWD standard on B5.
The B4 FWD version makes 194 hp and will be dropped for 2028, leaving B5 AWD as the only combustion option. Top speed is electronically limited to 114 mph.
The setup delivers torque early thanks to the 48V system. The 6.1-second 0-60 mph time is consistent with a compact SUV at this power-to-weight ratio.
No plug-in charging is needed. The MHEV system cannot run on electricity alone. It recovers energy under braking and assists low-end torque.

MSRP in the US is $39,900 for B4 Core, $42,600 for B5 Core and up to $51,250 for B5 Ultra. Final destination fees not included.
Insurance in the US is not officially disclosed for this specific trim, but the compact premium segment carries above-average premiums. Volvo includes 3 years / 36,000 miles of complimentary maintenance in the US, which helps with early ownership costs.
Depreciation for the XC40 MHEV has no official figure yet. The EX40 electric shows 6.7 to 16.2% depreciation between 2026 and 2027 on Brazilian FIPE data, but that does not apply to the B5.
Recalls in the US include NHTSA software recalls for braking and camera, IDs 25V-282 and 25V-392, covering Volvo models from 2020 to 2026 including XC40.
Financing and lease offers were not disclosed in the primary sources collected.

2.0L turbo B5 MHEV 48V with 247 hp and 258 lb-ft, 8-speed automatic and standard AWD.
EPA 23 city / 30 highway / 26 combined. Real testing showed 21 mpg observed and 27 mpg at 75 mph.
MSRP $42,600 for B5 Core to $51,250 for B5 Ultra. B4 Core starts around $39,900 before being discontinued in 2028.
20.1 cu-ft behind rear seats, about 47 to 51 cu-ft folded. Tank is 14.2 gallons.
According to owner reports gathered in research: Google infotainment bugs requiring reset, intrusive stop-start, noisy engine at idle, seat comfort below some luxury rivals, and brake software recalls.
IIHS Top Safety Pick+ for 2024-2025 with Good scores, and NHTSA 5 stars overall.
It is a mild hybrid, no plug-in charging needed. Premium fuel is recommended for best performance, per Volvo’s turbo engines.
Buy B5 if you want no charging and standard AWD with 369 miles range. Wait for EX40 if you want full electric and 67 to 82 kWh battery options.
Biggest strength is proven safety. IIHS Top Safety Pick+ and NHTSA 5-star ratings plus a full ADAS suite standard give it an edge over X1 and Q3.
Biggest limitation is efficiency and tech polish. Combined 26 mpg is only average for the segment and owners report infotainment glitches and brake software recalls.
It makes sense for buyers who want a compact premium SUV with standard AWD, 247 hp and strong safety without moving to a full EV. It makes less sense for shoppers who prioritize best-in-class fuel economy or lowest insurance cost.
In one line: a safe, Scandinavian alternative to German rivals for drivers who still want gas.
Would you pick the 247-hp XC40 B5 AWD over a BMW X1 or Audi Q3, or go electric?
10/09/2026