Volvo introduced the second generation of the S40 lineup in late 2003 at the Frankfurt Motor Show in Germany, and the difference compared with its predecessor was massive.
While the first generation of the S40 was introduced in 1995 and shared its platform with the Mitsubishi Carisma/Lancer, the second generation was developed in an era when Volvo was under Ford's umbrella. As a result, it shared its platform with the second generation of the European Ford Focus and the Mazda 3 (BK). In terms of styling and engineering, it was a clear departure from the old books used by Volvo to build cars.
In terms of exterior design, the second generation of the S40 resembled the shapes of the S60, with its drakkar-style nose and recessed headlights. The rounded shaped hood featured a higher center area with the sides lowered on the front fenders. Its grille was incorporated into the upper side of the front bumper, while in the lower area, the automaker added a secondary air intake to help cool the engine. Volvo also included a third row of windows behind the rear doors to add more light to the cabin.
The Swedish automaker used the same design language as on the S60 for the rear quarter panels, with slightly wider shoulders over the rear wheels. Finally, at the back, Volvo added corner-mounted taillights. It didn't want to extend them over the trunk lid to comply with U.S. regulations regarding tail lamps. Overall, it looked more like a shrunk-down S60, and it was even shorter than its predecessor, which was unusual.
Inside, the premium compact sedan offered customers comfortable wide bucket seats, and the driver enjoyed tilt and telescope steering column adjustments. The minimalist design of the vehicle also affected the instrument cluster, where Volvo installed two large dials for the speedometer and tachometer that included the water temperature and fuel level gauges, respectively. As an option, the automaker offered a pop-up navigation system that rose from the dashboard's center. Still, the main attraction was the center stack, with its compact design, which housed the HVAC and audio controls.
In the back, passengers enjoyed better legroom than in the previous generation of the S40 due to the longer wheelbase. The bench seat was wide enough to accommodate three people. Still, the arched side walls limited the outboard-seated passengers' headroom. In terms of safety, the S40 boasted a plethora of airbags, including curtains. Moreover, it even offered a whiplash protection system that tilted the front seats rearward in case of a rear-ended crash. The trunk could hold up to 14.3 cu-ft (405 liters), and thanks to the split-folding rear bench's seatback and the side passenger folding seat, longer items could be loaded.
Under the hood, Volvo installed a mix of engines produced either by the Swedish automaker or Ford. Power ranged between 100 PS (98 hp) and 220 PS (217 hp) and was sent to the front or in all corners via a Haldex center differential.
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