Front-wheel-drive models exhibit some torque steer, especially with the more powerful engines. Stand on the gas and you'll feel a tug on the steering wheel. It's really no big deal, though, and you get used to it. Still, the S60 definitely engages the driver, because you have to pay attention to the steering when you're driving hard. It's extremely stable at high speeds, however.

The T5 produces prodigious thrust from its high-pressure turbocharger. And Volvo's turbocharged engines get good gas mileage. The T5 rates 21/27 mpg with the six-speed manual transmission.

We found the brakes on the soft side. We didn't feel thrown forward in the seat under hard braking as we have with other sports sedans. But braking was stable and the ABS was very smooth.

The S60 AWD steering is slightly heavier than it is in the front-drive models because of the weight of the all-wheel-drive system. The AWD steering also has a more on-center feel (less play, in other words). The ride is firmer on the all-wheel-drive version, which has stiffer shocks to handle the increased weight. Overall, we think the AWD model's improved traction and handling in the rain and snow are worthwhile for anyone who annually faces those conditions.

We drove over gravel roads in the S60 AWD, and found directional stability on loose surfaces excellent. Power in the S60 AWD is distributed between the front and rear wheels using a wet multi-plate clutch controlled by electronics according to driving conditions. With a steady throttle on dry pavement, about 95 percent of the power is transmitted to the front wheels; but up to 70 percent can go to the rear wheels when required. The balance changes seamlessly and instantaneously. Of course other automakers say that, too, but the difference in Volvo's Active-On-Demand system is the degree of instantaneous-ness, particularly with the new Instant Traction system, which pre-charges the AWD system to provide instantly available torque. When one wheel slips, the balance of power shifts away from that wheel, thus replacing the slip with grip. As a result, it's more secure and better stuck to the road when the weather gets nasty. Acceleration is also improved in slippery conditions. The narrower tires on the AWD model improve stability and handling in the slippery stuff, as well. This makes the S60 AWD an excellent choice for driving on snow and ice.

The S60 R is another animal altogether. It was designed and developed by Hans Nilsson, who's been a Volvo engineer for 26 years and races his own Volvo in 24-hour endurance races. Volvo let him alone to do what he knows how to do, and he did such a bang-up job they now call him the Czar of R. We tested the S60 R on the road course at Las Vegas Motor Speedway, and it was a perfect day in a perfect car. The balance is brilliant, the engine train-like, the gearbox bulletproof and the brakes bomb-proof.

The R suspension is what's really special. Volvo says it's the most advanced active chassis on the market. A button on the dash allows three settings, Comfort, Sport, and Advanced, which mostly address the shock stiffness and engine management. There are distinct differences among them, and each performs exactly as defined by the buttons. No more compromises with the ride of your high-performance car: You have a suspension that's soft when you want it to be, and stiff when you need it to be. Up to 500 times a second, sensors measure things like longitudinal, lateral and vertical acceleration of the car relative to road conditions and driving actions, and use this information to constantly adjust the ride. But the real leap with this technology is that sensors from the suspension, wheels, throttle, steering and brakes all communicate with each other before the various instantaneous settings are determined, including stability and traction control.