The V50 T5 AWD featured all-wheel drive and a straight-5 2.5 litre petrol engine, with a light pressure turbocharger, four valves per cylinder and a DOHC design with variable camshaft timing — providing 220 PS (162 kW; 217 hp) and 320 N⋅m (236 lb⋅ft) of torque. Diesel options were available in Europe, including a 2.4 Litre turbocharged D5 diesel engine which provided 180 PS (132 kW; 178 hp) and 350 N⋅m (258 lb⋅ft) of torque.

Within the United States, Volvo limited sales of the V50 PZEV cars to states where it was required, including California, Florida, Vermont, Connecticut, Arizona, Maryland, Massachusetts, Pennsylvania, New York, Oregon, Maine, New Jersey, Rhode Island, New Mexico and Washington.