Volvo is more or less known for its hulking great estates of the late-'80s and early-'90s that looked like they could have been turned into tanks by cash-strapped eastern European countries. The Swedish manufacturer has often tried to combat that image by being all sexy or trying to come across as exciting, but it has never really convinced the average buyer.
The company has had a bit more success of late with its smaller family-sized saloons and lifestyle estates, which perhaps shows that with people downsizing they want to retain the feel of supreme safety that a bigger car brings and Volvo is known for.
At any rate, this makes the S40 an important car for the manufacturer. It has been styled quite conservatively by Volvo; the design looks much the same as the company's bigger cars without adding anything new. The interior does however showcase a few innovations, most notably the floating panel in the centre of the dashboard which debuted here and has now become ubiquitous across the Volvo range.
The cabin feels solidly constructed, but it isn't quite on a par with the more premium manufacturers that it aspires to compete with. This is really the essence of the problem for Volvo - it charges more than the mainstream manufacturers but can't really be seen to be providing anything more. The company does exist in a limbo between sportiness and luxury.
The engineering benefits from being based on the Ford Focus, which is the clear leader in its class in terms of driving dynamics. Some of that car's sharpness has been lost in the translation into Swedish, but it is still quite agile and fun to drive. It feels stable at a cruise on the motorway, which is likely where it will spend most of its time. Space is adequate up front, but the rear seats do feel cramped.
The engines are all quite capable and down to personal preference, although we'd suggest avoiding the entry-level 1.6-litre petrol engine, which is the only one that isn't able to keep up. The 1.6-litre diesel makes the most sense with impressive economy. Overall high-speed refinement is very good and the ride impresses too although it suffers the bigger the wheels you slap on.
The S40 works out quite expensive in many ways, but people will probably pay the premium just for that perception of safety.