Watch your back, Audi.  There’s another all-wheel drive station wagon that combines European styling and luxury with entertaining performance at a price most mortals can afford.  The all-new Volvo V50 AWD may be the first serious challenger that the Audi A4 Avant has ever had.  BMW’s 3-Series wagon is available with all-wheel drive and has the European sport-wagon thing down, but it costs too much.  Subaru’s all-wheel drive wagons aren’t quite luxurious enough to compete, even in upscale L.L. Bean trim.

But let’s not talk about the also-rans.  The newest, smallest Volvo wagon is a serious contender, with spirited performance, over sixty cubic feet of cargo space and the stability of all-wheel drive.  We’ve driven it in the dry, in the wet, in the snow and even on a race track plowed into the ice of a frozen lake in Quebec.  There seems to be no weather condition short of a tornado or hurricane that will significantly upset the V50.

At a glance, the V50 looks just like its big brother the V70, and the family resemblance isn’t a bad thing.  The V50′s lines are more compact and more aggressive however, with significantly shorter overhangs front and rear.  Distinct shoulder lines run the length of the car, and Volvo’s trademark high-mounted taillights dominate the rear aspect.  The optional 17″ alloys fill the wheel wells, and it looks good in red. One minor quibble; for some reason, every V50 we’ve driven has windshield wipers that are susceptible to freezing and skipping in cold, wet weather.

Inside, the V50 splits the difference between luxurious and sporty with a clean, modern design.  The flat-panel console is the first thing to draw the eye; inspired by television remote controls, it’s only about three inches thick and looks like a ribbon of ancillary controls has been stretched from the top of the dash to the console.  It also allows for a handy storage cubby behind.  The seats are comfortable (and can be heated), with plenty of leg and side support for long drives.  We absolutely loved the T-Tec seat fabric, which repels water and spills, feels better than leather, and looks more durable and upscale than cloth.  The dash and instrument panel are nice and minimalist, with a clean design and Volvo’s typically slightly confusing radio controls.  Steering-wheel controls and well-placed stalks allow the driver to keep both hands on the wheel in nasty weather.  Rear-seat legroom and shoulder room are slightly better than the A4′s.  The V50 is just the vehicle to whisk you and three friends out to the famous Ice Hotel in Quebec.  It’s a decent cargo hauler, too, with a folding front passenger seat that creates almost as much space inside as in the larger V70.  The V50 is prewired for a navigation system.

The 218-horsepower, 2.5 liter turbocharged five-cylinder under the hood is strong, and the six-speed manual transmission turns the V50 AWD into an all-season sport wagon.  218 horses isn’t a fashionably big number, but the V50 is a good runner, able to accelerate with confidence and run at mile-eating freeway speeds.  A five-speed automatic is also available.  Front- and all-wheel drive are available.  The V50 is easy to drive, in part because it’s friendlier and lighter than the Volvos we’re used to.  Fuel economy is fair as well; the V50 AWD manages 26 mpg on the highway, and properly equipped V50s will break 30.  Two-wheel drive V50s are available with a 168-horsepower naturally-aspirated 2.4 liter five-cylinder as well.

Whether it’s on dry pavement or on snow-dusted ice, the V50 AWD combines all-wheel drive and Volvo’s strong-and-sturdy body structure for a ride that’s supremely confident on all surfaces.   MacPherson struts and a multi-link rear suspension provide a waddle- free ride that’s sporty enough to make the V50 fun on twisty roads. ABS.  Driving across an unexpected patch of ice is a non-event in the V50 AWD; the fast-acting system catches the wheelspin, balances the torque and keeps the car on a straight path without driver input.  Within the latest crop of compact sport wagons, we rate the V50 higher than the Jaguar X-Type wagon and on par with the Audi A4.

Pricing is reasonable, too. The V50 starts at $26,205 for the base 2.4i model, and turbocharged T5 models fetch $27,840.  For all-wheel drive, the bottom line moves up to $29,615.  Our well-equipped tester was $34,470 thanks to the addition of rain-sensing wipers, heated seats, 17″ wheels, an appearance package and stability control.  That’s steep-ish, but in line for a car that serves as both premium compact wagon and viable SUV alternative.

Specifications:
All specs are for the 2006 Volvo V50 T5 AWD, which we tested.
Length:  177.7 in.
Width: 69.7 in.
Height:  57.2 in.
Wheelbase: 103.9 in.
Curb weight: 3483 lb.
Cargo space: 62.9 cu.ft. (all seats folded)
Base price:  $29,615
Price as tested:  $34,470
Engine: 2.5 liter turbocharged DOHC inline five-cylinder
Drivetrain:  six-speed manual, all-wheel drive
Horsepower: 218 @ 5000
Torque: 236 @ 1500-4800
Fuel capacity:15.3 gal.
Est. mileage: 19/27

Watch your back, Audi. There’s another all-wheel drive station wagon that combines European styling and luxury with entertaining performance at a price most mortals can afford. The all-new Volvo V50 AWD may be the first serious challenger that the Audi A4 Avant has ever had. BMW’s 3-Series wagon is available with all-wheel drive and has the European sport-wagon thing down, but it costs too much. Subaru’s all-wheel drive wagons aren’t quite luxurious enough to compete, even in upscale L.L. Bean trim.

But let’s not talk about the also-rans. The newest, smallest Volvo wagon is a serious contender, with spirited performance, over sixty cubic feet of cargo space and the stability of all-wheel drive. We’ve driven it in the dry, in the wet, in the snow and even on a race track plowed into the ice of a frozen lake in Quebec. There seems to be no weather condition short of a tornado or hurricane that will significantly upset the V50.

At a glance, the V50 looks just like its big brother the V70, and the family resemblance isn’t a bad thing. The V50′s lines are more compact and more aggressive however, with significantly shorter overhangs front and rear. Distinct shoulder lines run the length of the car, and Volvo’s trademark high-mounted taillights dominate the rear aspect. The optional 17″ alloys fill the wheel wells, and it looks good in red. One minor quibble; for some reason, every V50 we’ve driven has windshield wipers that are susceptible to freezing and skipping in cold, wet weather.

Inside, the V50 splits the difference between luxurious and sporty with a clean, modern design. The flat-panel console is the first thing to draw the eye; inspired by television remote controls, it’s only about three inches thick and looks like a ribbon of ancillary controls has been stretched from the top of the dash to the console. It also allows for a handy storage cubby behind. The seats are comfortable (and can be heated), with plenty of leg and side support for long drives. We absolutely loved the T-Tec seat fabric, which repels water and spills, feels better than leather, and looks more durable and upscale than cloth. The dash and instrument panel are nice and minimalist, with a clean design and Volvo’s typically slightly confusing radio controls. Steering-wheel controls and well-placed stalks allow the driver to keep both hands on the wheel in nasty weather. Rear-seat legroom and shoulder room are slightly better than the A4′s. The V50 is just the vehicle to whisk you and three friends out to the famous Ice Hotel in Quebec. It’s a decent cargo hauler, too, with a folding front passenger seat that creates almost as much space inside as in the larger V70. The V50 is prewired for a navigation system.

The 218-horsepower, 2.5 liter turbocharged five-cylinder under the hood is strong, and the six-speed manual transmission turns the V50 AWD into an all-season sport wagon. 218 horses isn’t a fashionably big number, but the V50 is a good runner, able to accelerate with confidence and run at mile-eating freeway speeds. A five-speed automatic is also available. Front- and all-wheel drive are available. The V50 is easy to drive, in part because it’s friendlier and lighter than the Volvos we’re used to. Fuel economy is fair as well; the V50 AWD manages 26 mpg on the highway, and properly equipped V50s will break 30. Two-wheel drive V50s are available with a 168-horsepower naturally-aspirated 2.4 liter five-cylinder as well.

Whether it’s on dry pavement or on snow-dusted ice, the V50 AWD combines all-wheel drive and Volvo’s strong-and-sturdy body structure for a ride that’s supremely confident on all surfaces. MacPherson struts and a multi-link rear suspension provide a waddle- free ride that’s sporty enough to make the V50 fun on twisty roads. ABS. Driving across an unexpected patch of ice is a non-event in the V50 AWD; the fast-acting system catches the wheelspin, balances the torque and keeps the car on a straight path without driver input. Within the latest crop of compact sport wagons, we rate the V50 higher than the Jaguar X-Type wagon and on par with the Audi A4.

Pricing is reasonable, too. The V50 starts at $26,205 for the base 2.4i model, and turbocharged T5 models fetch $27,840. For all-wheel drive, the bottom line moves up to $29,615. Our well-equipped tester was $34,470 thanks to the addition of rain-sensing wipers, heated seats, 17″ wheels, an appearance package and stability control. That’s steep-ish, but in line for a car that serves as both premium compact wagon and viable SUV alternative.

The Fact Box:

All specs are for the 2006 Volvo V50 T5 AWD, which we tested.

Length: 177.7 in.

Width: 69.7 in.

Height: 57.2 in.

Wheelbase: 103.9 in.

Curb weight: 3483 lb.

Cargo space: 62.9 cu.ft. (all seats folded)

Base price: $29,615

Price as tested: $34,470

Engine: 2.5 liter turbocharged DOHC inline five-cylinder

Drivetrain: six-speed manual, all-wheel drive

Horsepower: 218 @ 5000

Torque: 236 @ 1500-4800

Fuel capacity:15.3 gal.

Est. mileage: 19/27