Volkswagen Atlas vs Volvo XC40

Launched for the 2018 model year, the Volkswagen Atlas is engineered specifically for the United States market. It's a three-row midsize crossover SUV, big for a VW, but targeting a popular market segment that already includes the Chevrolet Traverse, Ford Explorer, Hyundai Palisade, Kia Telluride, 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.

The 2024 Atlas lineup includes SE, SE with Technology, SEL, and SEL Premium R-Line trim levels, plus a new-for-2024 Peak Edition treatment available on the SE with Technology and SEL trim levels. For this review, we tested an Atlas SEL Premium R-Line, 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 the United States, the XC40 subcompact crossover remains to compete with the likes of the Audi Q3, BMW X1, Lexus UX, and Mercedes-Benz GLA-Class for aspiring luxury-car owners’ dollars.

The XC40 was unveiled in 2017, arriving in the U.S. as a 2019 model, and 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 B4 front-wheel drive (FWD) and B5 all-wheel drive (AWD) drivetrains. This Volvo XC40 review is based on the Ultimate trim in B5 AWD spec.