Since the launch of the 1992 Volvo 850, it was clear that Volvo entered into a new era, where front-wheel-drive and rounded shapes replaced the rear-wheel-drive systems and the boxy bodyworks.
Volvo needed a new platform and a factory inside the EEC (Economic European Community) to avoid customs taxes. The answer came from Mitsubishi, who was looking for a partner to build its Carisma mid-size range in Europe and invest in a new front-wheel-drive platform. The Swedish and Japanese carmakers joined their forces and produced the Volvo S40/V40 and the Carisma, respectively. And that's why the S/V40 had a 4x114.3 pattern for its wheels (PCD).
The 1996 S40 looked like no other Volvo before. At the front, the bumper featured a lower apron where the carmaker integrated the fog lights. Its horizontal headlights featured smoothed corners on the upper side, flanking the chromed grille with vertical slats. The greenhouse extended behind the rear doors, and the carmaker added a third, small side window between the rear doors and the C-pillars. A flat trunk lid with rounded corners and a set of corner-mounted taillights wearing a clear middle line completed the car's image.
Inside, the carmaker installed a dashboard with smooth lines and a center stack that hosted the HVAC controls on the upper side and the radio cassette player at the bottom. Volvo used a green light illumination in the instrument cluster, showing the speedometer in the middle and the tachometer on the left. Its five-seat cabin offered good room for the front passengers and adequate for the rear ones.
Under the hood, the Swedish carmaker installed a wide engine choice either built by Volvo or Mitsubishi (the 1.8-liter direct-injected gasoline unit) or Renault (the 1.9-liter turbo-diesel).