2016 Volvo XC60 update brings $4000-plus price cuts

The 2016 Volvo XC60 range has been released in Australia, delivering price cuts of more than $4000 on the three most affordable variants.
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Volvo Australia has cut $4225 from the price of the updated XC60 D4 Kinetic (now $55,765 plus on-road costs), T5 Luxury ($58,765) and D4 Luxury ($60,765), while adding extra equipment to make the premium mid-sized SUV even better value than before.

Meanwhile, Volvo has cut three petrol models from the 2016 XC60 range, discontinuing the T5 Kinetic variant as well as the two six-cylinder models, the T6 Luxury and T6 R-Design, leaving the T5 Luxury as the sole petrol option.


Kicking off the MY16 line-up is the D4 Kinetic, which trades its single-turbo 2.0-litre four-cylinder diesel engine for a detuned version of the larger twin-turbocharged 2.4-litre five-cylinder diesel from the D5.

The engine produces 140kW at 4000rpm and 420Nm between 1500-3000rpm – those latter figures promising to make it considerably more driveable than the old unit’s narrower 1750-2500rpm band for its 400Nm peak output.

Unlike the old front-drive D4, the new XC60 D4 Kinetic is now all-wheel drive, with power distributed to its corners via a six-speed automatic transmission.

In addition to the added ability of AWD, its braked towing capacity increases 200kg to 2000kg, though the downsides are that it’s now slower (9.7 seconds versus 8.5sec) and thirstier (6.3L/100km combined versus 4.9L/100km) than before.

New standard features in the D4 Kinetic include front parking sensors (rears already standard), an electric passenger seat, and an interior air quality system, while for the first time it can be optioned with the Driver Support Package, which adds blind spot monitor, rear cross-traffic alert, driver alert system, adaptive cruise control with full auto brake, and auto-dimming rear-view mirror and side mirrors. The package now costs $4000 across the range, making it $1000 cheaper than before.


Volvo has squeezed out slightly heightened performance from both the regular and Polestar-optimised R-Design tunes of the D5 engine. The standard tune now produces 162kW at 4000rpm (up 4kW) and 440Nm between 1500-3000rpm. The R-Design’s outputs are unchanged at 169kW and 470Nm.

Both shave one tenth of a second off their sprint times (8.2sec and 8.0sec respectively), while fuel consumption improves 9 per cent to 6.3L/100km.

The sole front-drive variant in the range, the T5 Luxury, is mechanically unchanged from before, powered by a 180kW/350Nm 2.0-litre four-cylinder turbo petrol engine, launching to triple figures in 7.2 seconds, and using 7.0L/100km.

Over the base Kinetic trim, the Luxury and R-Design variants gain sat-nav with voice control and active bi-xenon headlights among other features, while the R-Design also gets a number of unique sports tweaks.

2016 Volvo XC60 pricing (plus on-road costs):

D4 Kinetic $55,765 (-$4225)
T5 Luxury $58,765 (-$4225)
D4 Luxury $60,765 (-$4225)
D5 Luxury $69,990 (no change)
D5 R-Design $71,990 (no change)