The roomy Volvo V50 is the wagon version of the S40 compact sedan. Designed to compete in the entry-level sport wagon segment, the V50 is available with many premium features not available from other competitors. A choice of a 168-bhp 2.4L I-4, or turbocharged 218-bhp 2.5L I-5 engine, is coupled to a 6-speed manual (T5), or 5-speed Geartronic® automatic. The V50 T5 is available with AWD for improved traction and handling. Dynamic Stability and Traction Control (DSTC), Bi-Xenon headlights, and DVD navigation system are available. Some other V50 option packages include: Sport Package, Dynamic Trim Package, and Audio Package.

Dynamic Stability Traction Control (DSTC) becomes standard. Automatic transmission becomes standard for FWD T5 models.