Four years after introducing the S40 lineup in 1996, Volvo refreshed the vehicle to comply with new European emission standards and also improved the car's look.
The model was launched after an agreement with Mitsubishi, and the S40 was produced in the Netherlands at the NedCar factory alongside the Carisma built by the Japanese automaker. That's why both vehicles shared some underpinnings. It was a bold design for the Swedish automaker, which had to cut its ties with the older, wedged shapes shown on the 240 and 760 models. Meanwhile, in 1999, Volvo was bought by Ford, and the American automaker knew how to properly do a facelift and helped its new partner with the refreshed S40.
On the exterior, the car sported a new front fascia with rounded corners and edges for the headlights. In addition, the grille received a fresh design with horizontal and vertical slats that made the Volvo badge look better. Moreover, the bumper was completely new and featured reshaped fog lights in the lower apron with a swept-back design. From its profile, the S40's shape was similar, with the same raised deck and, depending on the options, a small wing.
Inside, there were minor changes to the cabin. On the center stack, the climate control panel was replaced. There was a new stereo, which featured an in-dash CD-player. Volvo improved the look of the instrument panel as well by adding larger LCDs on the bottom of the speedometer and tachometer for the onboard computer info and the odometer.
But the most important improvements were made under the car's skin. At the front, the car featured an improved suspension that gave it a slightly wider track. To comply with the new emission standards, the S40 also received direct fuel-injection systems for its diesel engines, which were carried over from Renault.
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