Since the launch of the 1992 Volvo 850, it was clear that Volvo had entered a new era where front-wheel-drive systems and rounded shapes replaced the traditional rear-wheel-drive layouts and boxy body designs. Four years after introducing the S40 lineup in 1996, Volvo refreshed the model to comply with new European emission standards and to improve its styling.
The S40 was launched after an agreement with Mitsubishi and was produced in the Netherlands at the NedCar factory alongside the Mitsubishi Carisma. This partnership meant both vehicles shared some underpinnings. It was a bold design move for the Swedish automaker, signaling a break from the older wedge-shaped designs seen on models like the 240 and 760. Meanwhile, in 1999, Volvo was acquired by Ford, whose expertise in facelifts helped refresh the S40’s appearance and appeal.
Volvo introduced the second generation of the S40 lineup in late 2003 at the Frankfurt Motor Show in Germany, marking a significant evolution from its predecessor. While the first generation, introduced in 1995, shared its platform with the Mitsubishi Carisma and Lancer, the second generation was developed under Ford’s ownership. It shared its platform with the second generation European Ford Focus and the Mazda 3 (BK), showcasing a departure from Volvo’s traditional engineering approach.
The second-generation S40’s exterior design drew inspiration from the S60, featuring the distinctive Drakkar-style nose and recessed headlights. By its 2007 update, the S40 was an entry-level luxury sedan offering a refined and stylish alternative. Though it wasn’t as engaging to drive as competitors like the Audi A4 or BMW 3-Series, the S40 attracted buyers with its more accessible pricing.
Available in two trim levels, the S40 offered a choice between a 2.4-liter engine producing 168 hp and a 2.5-liter 5-cylinder engine delivering 218 hp. The 2.4-liter engine provided decent performance but was overshadowed by the more powerful and attractive 2.5-liter unit. The base trim came equipped with 16-inch alloy wheels, manual climate control, power accessories, heated mirrors, and was only available with front-wheel drive.
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