Only one thing can save us from complete domination by hordes of sport-utility vehicles:  a four-wheel drive station wagon can do all of the same things asked of by the average suburban SUV, but in a more efficient, better handling, less expensive package.

Enter the Volvo V70 Cross Country.  Tough SUV looks, a raised suspension, off-road sensibility and capability enough to tackle anything that Ted the poser will want to do with his Mountaineer, surely? But what’s this?  The Cross Country gets seventeen miles per gallon, and only costs, er, a little over forty thousand dollars…

We have met the enemy, and he is us!

The Volvo V70 started its SUV transformation in 1997, with the V70 XC.  It was a V70 with SUV-like styling cues, all-wheel drive, and a mildly raised suspension–a Subaru Outback for the country club crowd.  For 2001 the Cross Country takes that concept a few steps farther from its roadgoing stablemates, with an even more aggressive face and a more radical suspension lift.  Following the success of Subaru’s Outback, Volvo decided to turn the Cross Country concept up a notch or two.

It’s hard to ignore the Cross Country’s assault-Volvo looks.  A matte-colored nose cap, big, exclusive wheels, bold side cladding and a shiny metal skidplate under the front bumper distinguish it from lesser V70s.  It’s a tall car, splitting the difference between SUVs and regular cars, but it doesn’t show unless the V70 is parked next to another car.  The front fenders have been widened to make room for six-spoke aluminum wheels clad in aggressive Pirelli Scorpion tires that just beg for a mudhole or pile of snow to claw through.  Aft of all that, the Cross Country is all retro-modern Volvo styling.  Familiar design cues like the diagonally split grille, vee’d hood, beltline “shoulder” and top-to-bottom taillights leave no doubt that this is a Volvo.

Inside, the most obvious difference from other Volvo wagons is the addition of a large silver grab handle in the center console.  We’re not sure which direction the car would have to be going in to urge passengers to seize it for support, and maybe we don’t want to know.  Otherwise, being a Volvo inside isn’t at all a bad thing.  Like the on-road V70, the Cross Country’s list of “surprise and delight” features is a mile long:  a picnic table for the tailgate, an optional 10-CD changer and 150-watt subwoofer, a 40/20/40 split rear seat, an optional shopping bag holder for the cargo area, pen, water bottle, and credit card holders, rear air conditioning vents mounted at face-height, two different kinds of optional cargo cages, two different kinds of optional child seats, and so on, and so on.  Volvo’s equally comprehensive set of safety features is also present.

When the going gets rough, the Cross Country is up to the challenge.  One reason many suburban buyers have turned to SUVs is for the confidence that they offer, and the Volvo has that in spades.  Its eagerness borders on overconfidence, actually; it’s easy to forget that this is a light-duty offroader at best.  It may feel like it can climb a rocky mountain or ford a two-foot deep stream, but we don’t recommend trying that; 7.6″ of ground clearance may be more than a Ford Explorer’s and comparable to that of a Mercedes M-Class, but it’s not much when there isn’t a road.  The Cross Country owes its high-stepping ride to those tall tires and longer struts.  The wheelbase has also been lengthened slightly over that of the standard V70.

Much of the confidence is thanks to all wheel drive system, which has not changed much since the first Cross Country.  Power can be distributed to the front or rear, depending on where it’s needed.  Although the tall tires make handling somewhat sloppier than the standard V70′s, the Cross Country’s handling is worlds better than that of most SUVs.  It doesn’t want for traction on nasty roads, either, thanks to the TRACS limited-slip system at all four wheels.

On the road or off, Volvo’s updated turbocharged 2.4 liter five-cylinder engine shines.  The Cross Country makes good use of its 197 horsepower, and continuously variable valve timing is used to optimize fuel economy and smoothness.  The light-pressure turbo keeps lag to a minimum, squeezing a burst of power when it’s needed. It’s at home and comfortable on the freeway or in town.

Now for the inevitable downside.  All of that amazing mechanical and comfort equipment makes the Cross Country capable of filling the same role that a Lexus RX300 or a Mercury Mountaineer might.  It also shows in the bottom line; the Cross Country starts at $34,900.  Our test vehicle, equipped with a leather interior, a navigation system (with a nifty display that rises out of the dash), special thief-resistant laminated glass, heated seats and a third-row rear seat, hit the road at $43,480.  That’s enough to buy two Honda CR-Vs.  Ouch.  All of that rugged equipment adds weight, as well.  The 3699-lb Cross Country can only manage 17/22 mileage, which isn’t much better than the average V8-equipped sport-ute.

Don’t get us wrong.  The Volvo V70 Cross Country is a wonderful, versatile vehicle, and an excellent alternative to a sport-ute.  Just don’t imagine that it’s immune to all of a light-duty luxury SUV’s bad habits.  It may have started out as an alternative, but for all intents and purposes, it’s become one of them.  No, you won’t see one on the Rubicon Trail anytime soon, but the same can be said for the Lexus RX300, Mercury Mountaineer, Acura MD-X, BMW X5…need we go on?

Specifications:
All specs are for the 2001 Volvo Cross Country, which we tested.
Length:     186.3 in.
Width:        73.2 in.
Height:        61.5 in.
Wheelbase:    108.8 in.
Curb weight:    3699 lb.
Cargo space:    37.5 cu ft (seats up); 71.5 cu ft (seats folded)
Base price:        $34,900
Price as tested:     $43,480
Engine:     2.4 liter, DOHC turbocharged inline five-cylinder
Drivetrain:     five-speed automatic, all-wheel drive
Horsepower:     197 @ 6000 rpm
Torque:     210 @ 2000-5000 rpm
Fuel capacity:        18.5 gal.
Est. mileage:        17/22

6/2009 update: The V70 XC is still desirable, and still somewhat expensive.