The 2nd generation Volvo S40 compact sedan resembles a ¾ scale version of the midsize S60. Designed to compete in the entry-level sport sedan segment, the S40 is available with many premium features not available from other competitors. Engine choices include a 168-bhp 2.4L I-4, or turbocharged 227-bhp 2.5L I-5 engine, coupled to a 5-speed manual (2.4i), 6-speed manual (T5), or 5-speed Geartronic(R) automatic (2.4i and T5). The sporty S40 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 S40 option packages include: Sport Package, Dynamic Trim Package, and Audio Package.

New front fascia, grille, spoiler, headlamps and taillights. Revised center console and door pockets. Horsepower increases from 218 to 227 on T5 and T5 AWD models.