The "Thor's hammer" LED running lights flank a sharper version of Volvo's corporate face. The overall design is a smaller, more sporty version of what you see on the XC90 and XC60. That's far from a bad thing, as those two are some of the best-looking vehicles around.

At launch, the XC40 will come in a T5 Momentum all-wheel-drive variant. That model starts at $35,200 and comes with a turbocharged inline-four. Later in 2018, a $33,200 front-wheel-drive model will hit showrooms.

No Volvo would be complete without safety equipment. The XC40 comes standard with City Safety, which includes pedestrian, cyclist, vehicle and large-animal detection with automatic emergency braking. Other features include Pilot Assist, Run-off Road protection and mitigation, Cross Traffic alert and a 360-degree camera.