The Volvo S40 compact sedan competes in the entry-level luxury segment. The only available engine is a turbocharged 227-bhp 2.5L I-5 engine, coupled to a 5-speed Geartronic(R) automatic. Bi-Xenon headlights, and DVD navigation system are available.

Volvo has discontinued the 2.4i models for 2011. A new S40 T5 model becomes the base model. All-wheel drive and manual transmissions have also been discontinued.