2005 Volvo XC70 Test Drive

2005 Volvo XC70 AWD

This rugged, versatile and safe wagon can take on the worst winter has to offer and still have snob appeal.

What's the only thing better than being at a ski resort in Vermont in late January with a layer of fresh powder on the ground?

Being there in a Volvo XC70 AWD.

With the temperature huddling in the single digits on days when only large pickup trucks with snow plows affixed to their front seemed capable of navigating the frozen highways, the XC70 was in its element. The suffix AWD stands, of course, for "all wheel drive" and this sweet little Swede is as frisky in the snow as an amorous Eskimo.

Previously badged as the Cross Country, the $34,810 XC70 is one of a recent breed of luxury wagons -- like the Audi S4 Avant and BMW 5-Series Sport wagon -- that offer the handling and speed of a sedan with greater cargo volume. Styled with the same aerodynamic designs as their two- and four-door counterparts, these are wagons that provide a driving experience that just can't be found in a sport utility vehicle or minivan.

What's curious is that, despite the appeal of these cars, they don't sell all that well. According to the manufacturers, for 2003 the Mercedes-Benz E-Class wagon sold 1,995 units, BMW sold 1,500 5-Series Sport wagons, and Audi sold only 122 S4 Avants. Volvo was far and away the most popular in the category, although it costs on average $10,000 less, selling 17,185 units in 2003. That was still down from more than 19,000 in 2002.

To put it in perspective, the best-selling wagon in the United States, the Ford Taurus, which comes fully loaded for around $23,000, sold more than 30,000 units last year and that was a down year. The best-selling SUV, the $26,000 Ford Explorer, moved more than 268,644 units in 2003, representing a 45% jump over the year before, according to J.D. Power and Associates. (The best sellers in the United States are the Toyota Camry and Honda Accord, which sold more than 400,000 each.)

Why aren't these wagons selling? For one thing, they cost a lot. There's a reason why most people in Vermont, a state that has an average per capita income of under $30,000, choose practical pickup trucks instead of sleek Eurowagons. Outside pockets of upscale communities around the country, few people have the money or inclination to blow around $40K on a new Audi, BMW or Mercedes wagon. (Sedans are a different matter entirely, however: for 2003 Mercedes says it sold 53,240 of its comparably priced E-Class sedans.)

The other reason is that, while practical, they aren't practical enough. Sure, the XC70 is great at tackling the tundra but you can't hang a snowplow on it. The Audi, the Mercedes, the BMW just don't have the carrying capacity of an SUV.

What do they offer, though, is solid engineering, good looks and, frankly, snob appeal. Some people don't want to drive pickup trucks and there's nothing wrong with that. Other people just want the versatility that a wagon like the XC70 can offer. Want to find out if the XC70 is right for you? Read on.