Volkswagen Atlas vs Volvo XC40

Launched for the 2018 model year, the Volkswagen Atlas is engineered specifically for the North American market. It's a mid-size three-row SUV, big for a VW, but targeting a popular market segment that already includes the Chevrolet Traverse, Ford Explorer, Hyundai Palisade, Kia Telluride, Honda Pilot, Nissan Pathfinder, Subaru Ascent, and Toyota Highlander. To keep up in such a competitive segment, the Atlas gets a major refresh for the 2024 model year.

The 2024 Volkswagen Atlas is essentially the same vehicle as before, but it gets key updates like different styling and more standard features. It also loses its six-cylinder engine option, but the remaining turbocharged four-cylinder engine gets more horsepower and torque.

In Canada, the 2024 Atlas lineup includes Comfortline, Highline, and Execline, plus a new-for-2024 Peak Edition trim that slots in just above base. For this review, we tested the U.S. equivalent of an Atlas Execline, representing the top of the range.

In Volvo speak, “40” denotes an entry-level model. While the Swedish automaker no longer rosters the S40 sedan or V40 wagon in North America, the XC40 subcompact crossover remains to compete with the likes of the Audi Q3, the BMW X1, the Lexus UX, and the Mercedes-Benz GLA for aspiring luxury-car owners’ dollars.

The XC40 was unveiled in 2017, arriving as a 2019 model, and it hasn’t undergone a redesign since. An all-electric Volvo XC40 Recharge variant joined the lineup as a 2021 model. Volvo’s other current EV, the C40 Recharge, is also broadly similar to the XC40 models, but with a coupe-like body style.

For 2023, Volvo gave the XC40 several notable updates, including new mild-hybrid powertrains, revised styling, and the Android-based infotainment system previously seen on the XC40 Recharge and other Volvo models.

The mild-hybrid lineup includes base Core, mid-level Plus, and top Ultimate trim levels, with standard B5 all-wheel drive (AWD) drivetrains (the B4 front-wheel drive, or FWD, version offered in the US is not available in Canada). This Volvo XC40 review is based on the Ultimate trim in B5 AWD spec.