Volvo XC60 vs Peugeot 408

What's the difference?

The facelifted Volvo XC60 Ultra B5 Dark is the car at school pick-up that doesn’t need to brag. It just gets on with things and it looks good doing it. It offers a strong mix of family-focused features, comfortable and composed road manners and thoughtful practicality throughout the cabin.

The updated media system is crisp and responsive, though it could use a few tweaks to be truly intuitive. Overall, the XC60 mild-hybrid remains a solid choice for families who value understated luxury, comfort and safety over flash. It doesn’t reinvent the wheel, but it does what it does well.

The Peugeot 408 GT plug-in hybrid features tech that could be improved upon and like all plug-ins, you get the best economy if you regularly charge it and that’s not always realistic. It is a little expensive compared to its rivals but sports a killer design that looks fresh and the cabin is roomy with nice features.

The XC60 has a graceful, poised curbside presence. Its wide stance and smooth body panels give it a confident silhouette, while the redesigned grille with dark accents, integrated intake vents (both faux and real), and those sharp 'Hammer of Thor' headlights tie it all together. It’s not trying to be sexy, but it is undeniably handsome. It's the kind of SUV that turns heads quietly rather than shouting for attention.

Inside, the vibe is pure Scandi chic. There’s a refreshing lack of plasticky surfaces, with everything feeling solid and premium to the touch. The supple Nappa leather seats and expansive panoramic sunroof instantly make the cabin feel airy and refined.

Taking centre stage on the dash is a new 11.2-inch portrait-style media display. The layout is a little too reminiscent of an oversized iPad for my taste, but the crisp graphics and quick touch response are big pluses. Adding a touch of craftsmanship, the crystal Orrefors gear shifter and genuine driftwood inlays across the dash and centre console bring warmth and texture you don’t find in most rivals.

Is this facelift breaking new ground? Not really. But then, it doesn’t need to. Volvo has long been firmly planted in the premium end of the field and this update simply shows it's still cultivating all the right qualities.

There’s quite a lot happening with the design because of the mash-up of body styles. The long sleek body has sedan vibes but it sits high enough to tag itself as an SUV and the rear has that classic coupe pinching.

It won’t be everyone’s cup of tea but I like it. It's bold and different, which feels like a bit of fresh air in this SUV-heavy market.

The lights also set this apart from its Peugeot stablemates and look more refined, too. You can still see the remnants of the original ‘claw’ design in the tail-lights if you look closely but it's the long vertical DRLs at the front that give the design real edge. They resemble the fangs of a snarling cat (just too cool).

The sophisticated sleekness is extended to the interior where you find a cabin that is flush with high-end materials and soft touch points.

The curved dashboard, high-end tech screens and the mix of Nappa leather upholstery and synthetic leather trims definitely cement its grade position. While not a fan of the green contrast stitching myself, it does create an interesting focal point.

The XC60 is spacious without being sprawling. The front row is the sweet spot for comfort, with generous leg and headroom plus ergonomic seats that offer excellent under-thigh and side-bolster support. They also bring the luxury of heating, ventilation and even massage functions.

The rear row uses firmer padding, and while the backrest looks fairly flat, it’s deceptively supportive. Adults should be comfortable back there on longer journeys. Access is only slightly compromised by the wheel arch eating into the rear aperture, but otherwise it’s an easy SUV to get in and out of. My eight-year old pointed out that the rear doors are on the heavy side, though, and often need a good slam to latch properly.

Storage is well thought out throughout the cabin. Up front you get a decent glove box, cupholders, drink bottle holders, door bins, a dedicated phone tray that doubles as the wireless charging pad and a shallow centre console with two USB-C ports. One niggle. The cupholders don’t grip cups as snugly as they should.

The rear row has a 60/40 split with a 'ski-port' door and a fold-down armrest. And in the back, there are door bins with bottle holders, a fold-down armrest with cupholders and net map pockets. Rear passengers are also spoiled with dual-zone climate control, four directional air vents and two more USB-C ports.

One of the XC60’s best family-friendly features is the integrated booster seats, which have two height settings and fold neatly back into the base when not in use. They’re a lifesaver if you have kids who feel like they've 'aged out' of car seats but aren’t quite tall enough to go without. Of course, there are also ISOFIX mounts and three top-tether points if you still need to install child seats.

Out back, the boot offers a flat loading space, a powered tailgate with kick function and a healthy 613L of storage with all seats up (up to 1543L when the rear row is folded). You also get a 12-volt socket, a proper temporary spare tyre, and if you’ve got the optional air suspension (as per our test model) you can raise or lower the boot height for easier loading.

Tech usability is a bit of a mixed bag. The new 11.2-inch media display is sharp and responsive, and it comes pre-loaded with Google apps like Maps, Spotify and Assistant. But the Apple CarPlay and Android Auto isn't wireless, which feels like a miss at this price point.

The Bluetooth is patchy, with calls and music sometimes not syncing properly. A wired connection works better, especially for my iPhone 15 Pro Max, but I'm not a fan of leaving my phone on charge all the time. If you’re already familiar with Volvo or Polestar’s system, you’ll feel at home, but first-timers may need a little time to adjust.

Both rows have ample leg- and headroom for my 168cm height. Even my father, who is 183cm tall, felt comfortable in both rows.

The seats are comfortable and offer enough padding to be enjoyable on a long trip. The heat and massage functions on the front seats make the cabin experience feel refined but the massage function sometimes stops when the heat function is also on.

Individual storage is good for the class with the front getting some centre console storage spots, including a phone shelf, as well as a dual-opening middle console, glovebox and two cupholders. There are also a small storage bin and drink bottle holder in each door.

In the rear, there are directional air vents, two USB-C ports, map pockets and a drink bottle holder in each door but you miss out on cup holders, an armrest and other items you might expect for this grade level, like heated outboard seats or climate control.

The other charging options are solid with the front row getting two USB-C ports, a wireless charging pad and a 12-volt socket. There is another 12-volt socket in the boot.

The 10-inch touchscreen multimedia system looks great and you can customise your ‘buttons panel’ to the features you use most often, which is very clever. However, the system isn’t always responsive which gets very annoying - the seat functions in particular can be laggy.

The system does feature built-in satellite navigation and wireless Apple CarPlay and Android Auto but the multimedia system is too glitchy to truly charm.

The boot features a tyre puncture repair kit, relatively level loading space and 471L of boot capacity, which has been fine for all of my errands this week. You also get a hands-free powered tailgate, which is always handy.

The 408 is being offered in one grade for the Australian market, the GT model, and it’s priced from $67,990 before on road costs, making it more expensive than its rivals.

The closest rival, the Cupra Formentor VZe PHEV sits at $64,990 MSRP and the Citroen C5 X PHEV slides in as the most affordable at $57,670 MSRP.

However, only being offered in one grade does have its benefits because the GT is highly specified and most people will be satisfied with the long features list.

In terms of luxuries, there is a heated steering wheel, powered front seats with heat and massage functions, with Nappa leather upholstery and synthetic leather trims throughout.

The technology looks gorgeous with a 10-inch touchscreen multimedia system and a 10-inch digital instrument cluster headlining the dashboard. It's rounded out by the wireless Apple CarPlay and Android Auto, built-in satellite navigation, four USB-C ports, two 12-volt sockets and a wireless charging pad.

The key practical features include a powered tailgate, dual-zone air-conditioning, push-button start, keyless entry and the front driver's seat features a two-position memory function.

You can option a panoramic sunroof for an extra $2000, if you want it.

The 408 only comes in five colours, with the Obsession Blue on our test model being the only included colour. The rest are priced at $690 but the Elixir Red jumps up to $1050.

The Ultra B5 Dark tested here is all-wheel drive and has a 2.0-litre, four-cylinder, turbo-petrol mild-hybrid engine. It produces up to 183kW of power and 350Nm of torque.

The 'mild hybrid' tag comes from a 48-volt system paired with an integrated starter-generator. It’s not a full hybrid, so you won’t be gliding around silently on electric power alone, but it helps smooth out stop-start driving, boost efficiency and add a little extra shove when you put your foot down.

The result is an engine that feels lively in the city and confident out on the open road, with enough in reserve to make overtaking stress-free.

The 408 GT is a front-wheel drive that has an eight-speed auto transmission and is powered by a 1.6-litre turbo-petrol engine and an 81kW electric motor, which produce combined outputs of 165kW/360Nm. It can do a 0-100km/h sprint in 7.8 seconds. 

The switch between the electric and petrol components isn’t always seamless and you can feel some shudders as it flips between them at lower speeds but the power feels adequate for everyday driving.

Volvo claims combined cycle (urban/extra-urban) fuel use of 7.6L/100km for the XC60 Ultra B5 Dark, which isn’t bad for a turbo-petrol but reminds you that this is only a mild hybrid. With a 71-litre fuel tank, you’re looking at a theoretical driving range of up to 934km which is great for a family SUV likely to see its fair share of school runs and road trips.

In my real-world testing, which included plenty of urban driving with one longer trip in the mix, I averaged 8.6L/100km. That’s a little higher than the claim, but still a respectable result overall.

The official combined cycle fuel consumption figure is 1.5L/100km but that’s if you were recharging the car every time the electric range dropped out.

My real-world consumption sat at 5.5L after a mix of open-road and urban driving. I only charge it every other day as that’s realistic for my family life but like all plug-ins - you will get the best efficiency if you charge it regularly.

The 408 GT has a Type 2 charging port and a small 12.4kWh lithium-ion battery that can accept up to 3.7kW of power. You get up to 60km of pure electric driving range (but I only saw a top of 38km available) and on a domestic socket, you can go from zero to 100 per cent in around six hours.

On a 7kW or 11kW AC power charger, that drops to three and a half hours. So, it’s a tad slow to charge but worth it if you can leave your car on charge overnight.

There’s plenty of power on tap, with enough left in reserve when you really need to push it. Around town, the XC60 keeps up with traffic effortlessly, and out on the highway it never feels strained. The transmission is fairly punctual with its shifts, though you do need to drive it a little more assertively to avoid any lag when accelerating from a stop.

Visibility is excellent thanks to the big, wide windows and higher driving position. It’s also refreshing to have a wide rear window behind the C-pillar as it's something not all rivals manage.

On the road, the XC60 feels composed and comfortable. The cabin stays quiet even at highway speeds and the suspension soaks up the worst bumps without ever feeling floaty or disconnected. Handling is equally predictable, with steering and dynamics that feel natural and reassuring. Take a sharp corner at speed and you will notice a slight loss of composure but it rights itself quickly.

Day to day it’s also very car park friendly. Parking sensors and the 360-degree camera view make manoeuvring simple, though the video feed looks a little blurry at the edges. A more seamless stitch between camera angles would improve the presentation, but functionally it gets the job done.

The 408 GT has more than enough power to be a comfortable open-roader. You can keep your speed consistent on hills and it has enough gumption to cross traffic quickly in an urban environment.

Steering is responsive and the car is easy to manoeuvre in close quarters but the lane-keeping aid does severe corrections, so have your wits about you when you’re on the go because it can be a fright when the wheel starts fighting you.

With the ride comfort, there can be vibrations through the seats and steering wheel depending on the road surface and you’ll know about it when you hit a bump. It’s okay enough to not be classed as rough but it’s not as refined as you'd hope.

Despite the narrow rear window, the visibility is actually very good and it’s easy enough to park but the 180-degree camera system needs work.

You'll end up using the straight reversing camera because you need to ‘drive’ over the space for an image to pop up for the '180-degree' view and by the time it does, you’ve parked anyway!

The 408 is so new that it doesn’t have an ANCAP safety rating but it has a long list of safety features that it might not worry you.

That list includes all of the biggies like rear cross-traffic alert, blind-spot monitoring, forward collision warning and AEB.

It also includes a driver attention alert, dusk-sensing auto lights, tyre pressure monitoring, lane departure and keeping aids, traffic sign recognition, intelligent seatbelt warning and adaptive cruise control.

Parking is sorted with the 180-degree view camera system and front and rear parking sensors.

The 408 only features six airbags, which is low, and is missing out on the newer front centre airbag and even a drivers knee airbag.

For any families out there, the rear features ISOFIX child-seat mounts on the outboard seats and three top-tether anchor points. Two seats will fit best, though.

The XC60 is covered by a standard five-year/unlimited-km warranty, which is okay for its class, especially at the premium end. You can pre-purchase either a three- or five-year 'Volvo Genuine Service Plan'. The five-year plan will set you back $3870, which is steeper than many rivals, though Volvo sweetens the deal with five years' complimentary roadside assistance. Services are spaced at every 12 months or 15,000 km, whichever comes first.

One thing for regional owners to keep in mind, while Volvo has a decent retail footprint, there are only 34 Volvo service centres in Australia. Depending on where you live, that can mean a long drive. In my case, the nearest Volvo service centre is almost two hours away. That adds travel time and inconvenience for regular maintenance or unscheduled work.

The 408 comes with a usual warranty term of five-years/unlimited km and the battery is covered by an eight-year or up to 160,000km warranty.

You can pre-purchase three, four, or five-years worth of services, which all work out to be cheaper than the pay-as-you-go option. It costs $1200 (three-years), $1700 (four-years), and $2000 for the five-year plan.

On the five-year plan, services average $400, which is reasonable for the class. Servicing intervals are also good at every 12 months/15,000km, whichever occurs first.