The starting price of the new T5 represents a savings of $5,850 compared to that of the former base model, the T6.
Unlike its costlier sibling, the T5 starts out as a front-wheel-drive model, with all-wheel propulsion available for an extra $2,000. And the T5 comes with five-passenger seating, while the higher-priced models can accommodate seven.
Another significant difference can be found under the hood. The T5 is equipped with a less powerful turbocharged 2.0-liter four-cylinder engine that puts out 250 horsepower, compared to the T6's turbo-supercharger combo version of the same engine that makes 316 hp.
As a result, the T5 offers a bit more fuel economy. It's estimated to deliver 22 mpg in the city and 26 mpg on the highway, compared to 20/25 for the T6 model.
Like the T6, the new T5 can be ordered in three trim levels — Momentum, R-Design and Inscription.
Even the base Momentum comes with a host of luxury and convenience features, while the R-Design adds sporty details to both the interior and exterior, and the top-of-the-line Inscription piles on the upgrades inside and out, including wood and Napa leather interior trim.
The XC90 was named the 2016 North American Truck/Utility of the Year earlier this month by a panel of automotive journalists.
Edmunds says: With the new XC90 T5, Volvo is tempting luxury SUV shoppers with a more affordable alternative.