First introduced in 2004, Volvo's S60 R used a Haldex all-wheel-drive system mated to a 300 PS (221 kW; 296 hp) / 400 N·m (300 lbf·ft) inline-5. The 2004–2005 models came with a 6-speed manual transmission, or an available 5-speed automatic which allowed only 258 lb·ft (350 N·m) torque in 1st and 2nd gears. The 2006–2007 models came with a 6-speed manual or 6-speed automatic transmission (which was no longer torque neutered).^[9]

Other aspects which set the R apart from standard S60s were the large Brembo front and rear four-piston brakes, 18-inch 5-spoke "Pegasus" wheels (available as an upgrade to the standard 17" wheels of the same design), blue faced "R" gauges, standard HIDheadlights, as well as the Four-C suspension system.

Four-C (a short name for "Continuously Controlled Chassis Concept") allows the user to select from three modes: Comfort, Sport, and Advanced. "Comfort" attempts to soften the car over bumps, while "Advanced" firms the suspension considerably and gives more aggressive throttle response - a setting Volvo implies is for use on the race track. This is accomplished through a drive by wire throttle, allowing the same pedal travel to result in different performance when the appropriate mode is selected,^[10] electronically-controlled shock absorbers that can adjust themselves 500 times a second, and a complex series of sensors throughout the body of the vehicle. Volvo collaborated with high-tech system developer Ohlins Racing AB and shock absorber manufacturer Monroe for the self-adjusting shock absorbers.^[11]

The Rs had three interior color options: Nordkap (metallic dark blue), Gobi (light tan metallic) and a R-only leather option; Atacama, available for an additional charge. It was an unpainted, orangey-coloured natural leather with a baseball glove thickness and feel.

The small trunk lid spoiler that was standard on the S60 R created a 20% increased downforce at the rear wheels at high speeds compared to the standard S60s. The S60 Rs have a 0.29 coefficient of drag, compared to the standard S60's 0.28, due to the larger lower front bumper spoiler to support the secondary intercooler.

Another Volvo factory option for only the S60 R was a body kit which included front bumper splitters, side skirts and a rear valance, color matched to the body. The body kit was only available with certain body colors and in certain markets.

The S60 R continued the tradition of "R" cars for Volvo beginning in 1995 with the introduction of the 850 T-5 R.

Top Gear reviewed the car in episode 9^[12] of series 2. They panned the overly complicated and intrusive traction control system, and it set a slow lap time of 1:35.0. But they also found it to be very comfortable and civilised. They recommended the Volvo V70 instead. Jeremy Clarkson noted "More like a miniature version of the Rolls-Royce Phantom than a serious competitor to the BMW M3."