SAN FRANCISCO — Volvo on Thursday said its 2010 XC60 T6 AWD, which goes up against the more expensive 2009 BMW X3, will start at $38,025. The price includes an $825 destination charge.

The 2010 Volvo XC60 goes on sale in March.

Volvo is keeping an earlier pledge to hold the price of its new compact SUV under $40,000. The Volvo has a wide range of foreign and domestic competitors, including the 2009 Acura RDX, which starts at $34,655, including a $760 destination charge. The XC60 also goes up against the new Audi Q5, which also arrives in showrooms in March. Audi has not yet released prices for the Q5.

Volvo said standard features on the XC60 include leather seating surfaces with a power driver seat, Sirius Satellite Radio, Bluetooth and HD Radio technology with USB and auxiliary ports. As a special introductory offer, a panoramic moonroof comes at no charge. The XC60 also gets Volvo's City Safety as standard equipment. The safety system prevents or mitigates collisions at speeds of 19 mph or less, according to the automaker.

A $2,700 technology package on the XC60 adds such goodies as a Dynaudio premium sound system, Dolby Pro Logic II surround sound, a 650-watt amplifier, 12 speakers, rear-seat headphone jacks, audio controls, a navigation system and a rear park assist camera. A $1,695 collision avoidance package bundles adaptive cruise control, collision warning with auto brake, distance alert, driver alert control and lane departure warning. A $1,000 convenience package adds a grocery-bag holder, 12-volt power outlet in the cargo area, front and rear park assist, a power tailgate and a remote garage door opener.

Other options, including $295 Nordic light oak inlays in the cabin and special exterior paint, can easily push the sticker price of the XC60 well past $40,000.