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Volvo XC90 T8 Twin Engine Momentum: Eco-busting business machine

Volvo XC90 T8 Momentum_Osmium Grey front dynamic
Volvo XC90 T8 Momentum- click for more

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28 February 2016

Volvo XC90 T8 Twin Engine Momentum

The Volvo XC90 T8 Twin Engine Momentum starts out by being exactly the same high quality, coolly presented 7-seat SUV as per all new XC90s. It really does look and feel something special. Then the hybrid element takes it to another level…

What is it?

Volvo’s made a major splash with the new XC90, its completely reborn seven-seat luxury SUV which launched in the UK last summer.

Through its quality and design, the XC90 genuinely sets out a new agenda for Volvo. At the top of the range, we now encounter this T8 Twin Engine plug in hybrid electric (PHEV) edition whose economy and tax efficient ways seem primed to grab SME attention all over again…

Though it looks much as any other new XC90, beneath the skin the T8 runs a 320 hp turbocharged and supercharged 2.0-litre petrol engine (driving the front wheels), plus rear-mounted 87 hp electric motor.

Volvo XC90 T8 Momentum_Osmium Grey_cab
Cockpit of the Volvo XC90 T8 Momentum

The Volvo’s set up to switch seamlessly between front, rear and all-wheel drive. Plus it can be driven up to 27 miles on pure electric power alone, Volvo says, thus emitting no pollutants at all.

The killer app for business users is likely to be the Volvo’s ultra low 49 g/km for C02, equating to a 5% benefit in kind (BIK) rate of just £1208 per year. That’s compared to the 28% charge (£14,120) with a new 152 g/km XC90 D5 diesel.

In fact, in entry level Momentum trim, as tested here, the T8 comes with a host of eye catching tax incentives, including up to £11,470 corporation tax relief, £2,500 government plug in grant and 100% first year write down allowance.

Previously, we spoke with Selwyn Cooper, Volvo’s head of business sales about the T8’s numerous tax advantages and clear appeal for SMEs.  We’ve since been out with a T8 Twin Engine Momentum to see if its considerable on-paper promise matches up on UK roads. And here’s what we found.

What’s hot?

  • It’s a hybrid but you’d hardly know. Skilful packaging means the T8 is still a 3-row 7-seater with the same passenger space as any new age XC90.
  • Though a complex, full-size SUV, T8 proves surprisingly easy, wieldy and unfussed to drive. Comfort, refinement levels also top notch.
  • Sophistication of the T8’s Twin Engine + electric motor format, providing both performance and economy, plus massive 407 hp combined output.
  • You’d never believe a 2.0-litre four cylinder 7-seat SUV weighing 2343 kgs at kerb could be this effortlessly quick. 0-62 mph in a claimed 5.6 secs!
  • The T8, especially on standard steel suspension with 19 in rims, is one of the best handling, keenly resolved Volvos to date. Steering also superb.
  • The hybrid battery (mounted inconspicuously between the front seats) can be fully recharged in 2½ hours using optional 16-amp fast charge cable. Or charging via standard domestic cable takes between 3½-6 hours. You can also have the rear electric motor charge the battery on the move.
  • On a full charge, EV driving range of up to 27 miles, Volvo says, so fine for a typical commute, say. T8 also comes with seven on-board drive modes.
Volvo XC90 T8 Momentum_Osmium Grey_Drive Select
Fingertip control: Choose your drive
  • The low taxes, of course. With BIK at just 5% equating to a £1208 tax charge per year, that works out appealingly at just over £100 a month.
  • No London congestion charge to pay. £0 VED and 100% first year write down allowance are further financial attractions of this Volvo T8 hybrid.
  • Huge standard kit includes leather seats, panoramic sunroof, four-zone climate control and 12.3 in active TFT driver information display.
  • City Safety tech (including pedestrian/cyclist detection) and Sensus Connect Sat Nav with real time traffic info etc also standard on T8.

What’s not?

  • It’s impressively high tech and efficient yet Volvo’s new hybrid still sounds anodyne. Can we say we still miss the Volvo five cylinder warble of old?
  • Extra cost and complexity over the ‘standard’ ie non hybrid XC90 might perhaps be an issue for some although low taxes obviously compensate.
  • No chance to match the T8’s extraordinary 134.5 mpg Combined Economy fuel figure with everyday driving. More like 30-40 mpg, at best?
  • Low taxes for now but anything can happen with HMRC. Only the entry level T8 Momentum currently eligible for the government’s Plug In Grant.
  • Luggage space slightly compromised for overall volume in hybrid trim, according to Volvo’s own figures, but not that you’d really notice.
  • We also tried a higher spec T8 Inscription with air suspension and 20-in wheels but for driver appeal, this 19 in steel sprung Momentum was tops.

 Business Car Manager verdict:

The Volvo XC90 T8 Twin Engine Momentum starts out by being exactly the same high quality, coolly presented 7-seat SUV as per all new XC90s. It really does look and feel something special.

Thereafter, the hybrid technology and spectacular tax savings clearly take it to a another level as far as SMEs are concerned. Look at the numbers, not least the enticingly low BIK charge (5%) or £1,208 per year. Not bad for a fast, cohesive, top end SUV which usefully can also run a fair distance on battery power alone.

Of course, it costs more than a conventional XC90 and its 134.5 mpg official figure is not to be believed in the real world. But then the tax dodging side of it and anticipated low running costs will go a long way to balancing that all out.

As well as being a remarkable engineering achievement by Volvo (it was conceived and designed all in-house), the sophisticated, user-friendly T8 also stacks up well as a modern age business machine with a difference.

The Low Down on:

Volvo XC90 T8 Twin Engine Momentum

Doors and body style 5-door, 7-seat PHEV
Engine/gearbox: 2.0 4cyl supercharged + turbo petrol plug-in hybrid/8-speed auto transmission
CO2 Emissions: 49g/km
Economy: 134.5mpg
Power/torque: 320bhp/400Nm (engine); 87 bhp/240Nm rear (rear motor)
0-62mph/top speed: 5.6secs/140mph
Insurance group: 42

…..and what it costs

 

P11D Value £60,400
Monthly business rental (ex VAT) From £n/a (3yrs/30,000 miles)
Road tax (VED) Band A
Company Car Tax Bands 2015/16 to 2018/19 5%, 7%, 9%
Benefit in kind 2015/16 to 2017/18  £3020/£4228/ £5436
Annual/Monthly fuel benefit (20%)  £221/£18.42
Annual/Monthly fuel benefit (40%) £442/£36.83
Annual/monthly company car tax (20%) £604/£50.33
Annual/monthly company car tax (40%) £1208/£100.67
Figures correct at time of posting
For latest figures Use our company car tax calculator
Volvo XC90 T8 Momentum_Osmium Grey rear dynamic
The Volvo XC90 T8 Momentum forgets it’s a hybrid in handling stakes

 

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