Volvo S40

The shared project with Mitsubishi (the Carisma was built at the same plant in the Netherlands) which also spawned the handsome V40 estate sold relatively well, but never really made a big impression in the upper-medium sector.

Although Volvo rooted out the quality issues within a couple of years, and the current S40 and V40 now seem excellent value, a change of strategy was needed for the new model following a change of circumstances.

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Volvo is now part of the Ford empire and a fully paid-up member of the Premier Automotive Group along with Aston Martin, Jaguar and Land Rover. The company sees itself as a genuine rival to the likes of BMW, Mercedes-Benz, Audi and even its sister company, Jaguar.

This was first seen with the S60, launched in 2000, which heralded a new dynamic styling direction for Volvo, intended to appeal to a younger audience.

As the new S40 marks the end of Volvo's partnership with Mitsubishi – it uses the C1 platform engineered jointly by Volvo, Ford and Mazda – it is being placed firmly in the premium sector and Volvo believes any premium car under £20,000 is fair game.

The first fruit of the C1 platform was the Ford Focus C-Max, while the Mazda3 will also appear at about the same time as the S40. A Volvo V50 estate will follow after a December 4 unveiling at the Bologna Motor Show.

When it goes on sale in the UK in January, Volvo will initially offer a 168bhp five-cylinder 2.4-litre engine in the S40, as well as a 217bhp 2.5-litre T5 and a 134bhp 2.0-litre common rail diesel (a result of the Ford-PSA diesel partnership). A 1.8-litre petrol engine will arrive in May, while entry-level petrol and diesel models (both using 1.6-litre engines) will arrive early in 2005.

Although other markets will also have a 138bhp version of the 2.4-litre petrol engine, it will not be offered in the UK because, according to S40 product manager Iain Howat, it would not be as attractive to fleets as a 2.0-litre engine with a similar power output. An all-wheel drive version of the T5 has also been left off the UK list.

Supply to this country is restricted, which should have a positive impact on residual values. UK allocation will be 7,000 units in the first full year with all engine variants, while 2003 will see just under 3,500 of the new S40 and a similar number of existing S40 models badged Classic.

It is difficult to place the S40 when comparing it with rivals. On price it competes with the Audi A3 and BMW 3-series Compact, but it could be an attractive proposition for Volkswagen Bora drivers as well as those at the lower end of the Audi A4 and BMW 3-series saloon ranges.

As usual, Volvo expects to make up ground on its rivals with better specification levels. Standard equipment on S models will include electronic climate control, a CD/radio, four electric windows, eight airbags, ABS with emergency braking assistance, anti-whiplash seats and 16-inch alloy wheels.

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SE models, priced at £2,250 more than S cars, add leather seats, steering wheel-mounted audio controls, auto-dimming rear view mirror, rain-sensing wipers, cruise control, 17-inch alloy wheels, front fog lamps, a trip computer and a six-CD player. A Sport model will be added to the range during 2004.

Although the 2.4-litre model will be priced at about £18,500, the 1.8-litre arriving in the middle of the year will undercut it by £2,500, giving an entry price of £16,000 on- the-road. The 1.6-litre car will have an expected asking price of £15,000.

Behind the wheel

LOOKING like a slightly smaller version of the S60, the new S40 has a classy appearance. Its proportions are slightly different though, with a short nose and tail emphasising the size of the cabin section.

Although the S40 is slightly smaller than the outgoing model, it is taller and wider with more interior space.

The focal point of the interior is the 'floating' centre console which comprises a single panel where the main audio and climate functions are located while the space behind, which would be inaccessible in other cars, has become a storage area. It really is a unique feature and is bound to be a talking point for anyone else travelling in the car. However, the interior seems to be short of other obvious storage areas, with shallow door bins and although the glove compartment is deep, it is quite narrow.

The boot is also deep, and despite the short boot lid it is hinged so it will fold back very close to the rear window, maximising the aperture for loading and unloading. Of course, for those who need practicality, the V50 estate is on the way.

The seats are typically comfortable – Volvo must be the industry leader in this respect – while two adults can sit comfortably in the rear, or three if they don't mind getting intimate.

Only 2.4-litre automatic and manual T5 models were available to drive on the launch, giving us a taste of the five-cylinder end of the range.

Leaving aside the engines for a moment, the electro-hydraulic steering offers more resistance and feedback than any other car in the Volvo range, while the benefit of a longer wheelbase and wider track are evident in the S40s behaviour on challenging roads.

Body roll is virtually non existent, while the S40's ride is composed, if a little 'floaty' over undulating stretches of road.

At the launch in southern Spain the weather was awful. Driving into the hills in thick fog patches and on rain-soaked roads I was a little cautious taking hairpin bends in the T5. If it's anything like other Volvo T5s, I thought, the front wheels would be scrabbling for traction.

However, I gradually built up confidence and discovered there was far more grip than I imagined. It reached the stage when I thought the traction control warning light might have been broken, but under severe provocation the nose edged wide.

Despite the vocal nature of five-cylinder engines, both the T5 and the 2.4 were remarkably quiet but offered an entertaining warble under hard acceleration. It wasn't particularly loud, but you knew the engines were there and keen to play.

The five-speed automatic transmission has a relaxed nature, but there is also a manual shift should the driver feel the need for a bit of DIY.

Driving verdict

THE Volvo S40 is a sleek and eye-catching car. Better to drive than any Volvo to date, it manages to project a more youthful image while still retaining Volvo's core values of safety and comfort. We look forward to trying the diesel, and eagerly await the V50.