The S60 returns in 2002 with a new all-wheel drive trim. This electronically controlled AWD system is teamed with the turbocharged 2.4 liter power plant. All S60 styles now include with Emergency Brake Assistance, a more responsive traction control system and improved throttle management for less turbo lag. A driver memory function for the mirrors and seat has been added to the 2.4T and T5 standard equipment rosters, and ISO-FIX child restraints are now in all models.

There are three engine options in the S60 lineup. The base model gets an unaltered version of the 2.4 liter inline five, which supplies 168 horsepower and 170 pound-feet of torque. The 2.4T adds a turbocharger to the five cylinder engine, for a total of 218 horsepower and 236 pound-feet of torque. The T5 houses a 2.3 liter inline five, generating 247 horsepower and 243 pound-feet of torque.

The Base and T5 models come standard with the five-speed manual transmission, while the 2.4T is only available with the five-speed automatic transmission. Volvo's Dynamic Stability Traction Control system is now standard in T5 models and optional on the 2.4T AWD. Fuel economy is estimated at 21/28 mpg with the manual transmission on either engine.

The S60 gains an edge over several competitors with the addition of an all-wheel drive model. Other highlights include the S60's upscale interior, powerful turbocharged engines, and a comprehensive list of safety features.

The S60 includes wide, supportive and soft seats, and all passengers get adequate leg and head room. Aside from a few lower quality materials and cryptic controls, the interior is luxurious and functional. Rear cup holders are a new addition to the Base model this year.