Volvo joins the ranks of luxury automakers capitalizing on the popularity of small, car-based sport utilities.

New for 2010 is the XC60, a smaller, less expensive cousin to the XC90 and more SUV-like than the XC70 wagon.

I thought the new Volvo looked pretty sharp and showed a little spirit behind the wheel, but my friend’s kids called it a “mom car.” But even if the kids weren’t impressed, moms and dads will appreciate the XC60’s safety features and precise handling.

A unique standard feature is called City Safety, designed to mitigate or prevent rear-end collisions at speeds up to 19 miles per hour. A speed sensor can detect if a crash is likely as you close in on another vehicle. If necessary, it will precharge brakes or even apply the brakes. Unfortunately, there was no safe way to test this feature.

Enhanced traction and stability control also are standard, along with another new feature dubbed Trailer Stability Assist to help provide more control when towing equipment up to 3,300 pounds. You also get fog lamps, antilock brakes, side airbags and curtains, and antirollover stability.

Optional safety gear includes a blind-spot monitor, child booster seats, a warning system that detects driver inattention or erratic control, adaptive cruise control to keep you at a safe distance from the vehicle ahead, a distance and collision alert to warn drivers and start braking if they close in on another vehicle when the cruise control is off, lane-drift alert, backup and parking aid, and headlamps that curve into turns.

There are two versions of the XC60. The front-drive XC60 3.2 is powered by a 235-horsepower V-6 engine, with all-wheel drive as an option. It is pretty thrifty on fuel for an SUV, getting up to 27 miles per gallon on the highway without being sluggish. The T6 AWD gets standard all-wheel with an inline 6-cylinder turbocharged engine rated at 281 horsepower along with leather seats and other upgrades.

The 3.2 starts at $33,245 and comes with features including remote locking, skid plates, power heated mirrors, rear windshield wiper, dual climate control, power seats with lumbar supports, sound system with HD radio, MP3 connectivity and CD player, six-month satellite-radio subscription, and Bluetooth interface.

While the all-wheel system limits off-roading, big 17- or 18-inch wheels boost ground clearance enough to make the Volvo a choice for light trailblazing and inclement weather.

Interior design is simple and a little on the Swedish side—specifically the slim center console, which allows for storage bins underneath. The hooded display for audio data, however, was hard to read.

Although the X60 downsizes from the midsize X90, there is plenty of room for four adults—even five on a short run. Front buckets are quite comfortable, and the second row offers decent legroom. Third-row seating is not available, which leaves a generous amount of cargo space even for a compact crossover.

In addition to Volvo’s XC60, other newcomers to the compact-crossover segment include the Audi Q5, Infiniti EX35, and Mercedes-Benz GLK, all similar in price and size, with the GLK leading the pack in cost at about $1,000 more than the Volvo’s starting sticker. The popular Lexus RX350 is a little larger and more expensive.

Given the heavy sales of compact sport utilities such as the long-running Honda CR-V and Toyota RAV4, it’s surprising it took some of the luxury brands so long to join the fray.