The 2025 Volvo XC90: A Tale of Two Vehicles

I drove the 2025 Volvo XC90 on a Monday (and a little bit on Tuesday) on a November day in Sweden (and a little bit in Denmark). The seat time the Volvo team gave us on the press trip was enough for me to notice that there are some style differences between this year’s model and the last, but they’re pretty minor. However, Volvo does offer two drive trains on this XC90, their largest family hauler. The gap between the two versions is so vast, they’re almost like different cars. 

First, the similarities: There’s a slimmer design to the headlights, which Volvo pretentiously calls “Thor’s Hammer,” along with a more streamlined front grille. It looks pretty nice. Your interior can either be a pleasant polyester blue herringbone fabric or an elegant-looking and feeling “bio-attributed leather-free upholstery” called Nordico, which is made from recycled Finnish pine resin. Both are perfectly pleasant. 

The cars also both feature an 11.5-inch center display, basically an in-house iPad, that gets rid of some of the confusing interface features of previous models, and brings them up to date with new Volvo electric SUVs that were released in 2024. There’s also an optional booming Bowers and Wilkins sound system that’s as complete and immersive as any I’ve encountered in a car.

But those are basically cosmetics. Under the hood, Volvo is selling two completely different machines under the XC90 banner. First, there is the B5, a “mild hybrid” that contains a small electric boost motor. Then, there’s the T8, a full-on plug-in hybrid. The B5’s motor generates 10 horsepower. The T8’s, 107. That’s a massive difference, and it shows in the performance. 

The cars have identical chassis, unchanged from previous editions. They contain the same in-line turbocharged four-cylinder engine, identical transmissions and identical steering systems. Yet by all appearances, the B5 has a maximum of 250 horsepower, and the T8 can get up to 455. The plug-in accelerates from zero to 60 in 5.4 seconds, while the B5 takes 7.7 seconds. For a modern car, that’s slow. 

No one sane is taking a Volvo XC90 for a spin around the racetrack. This is the definition of an upscale family hauler. But the difference couldn’t be more stark. A Subaru Outback has better pickup than the “mild hybrid,” and it’s a lot less expensive. There’s the added benefit that the T8 can get 50-plus miles on a pure electric charge. If you can charge it at home and charge it at work, that’s a daily driver that doesn’t need gas until you take it on a road trip. The B5 has no such option. 

But if only it were that simple. The B5’s base price is $58,450. With every possible add-on option, including heated seats, a full suite of advanced digital safety features, and heated and ventilated Nappa leather seats, it’s $67,450. On the other hand, the T8 starts at $73,000, and the top-end with add-ons goes to more than $80,000. 

Usually, you can have speed or you can have fuel efficiency, but you can’t have both. The XC90 points toward a particular problem with modern cars as they continue their long march toward full electrification. Now, you can have fuel efficiency and speed, or you can have neither. Comfort and amenities are negotiable. But if you want the two most desired mechanical properties of a car, you’re going to have to pay for them. If you’re already looking at the XC90, then you’re likely a dedicated Volvo enthusiast. And if you want this flagship family hauler at its best, then you’re going to want to pay to plug it in. The T8 is a lot more fun to drive. It’s the same car, but it’s also better.