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 227-bhp 2.5L I-5 engine, is coupled to a 5-speed Geartronic(R) automatic. The V50 T5 features AWD for improved traction and handling. Dynamic Stability and Traction Control (DSTC), Bi-Xenon headlights, and DVD navigation system are available.

The V50 will once again offer a manual transmission.