As the first Volvo model to emerge from Ford's corporate synergy programs, the S40 is vitally important. First, it's a chance for Ford to show it can generate quality cars from "platform sharing." This term not only comes with certain negative connotations (think Jaguar X-Type), it also trivializes what is a truly complex operation. This project can help overturn those beliefs. And second, it gives Volvo a "volume" car it can aim at a younger, more dynamic buyer.
The S40 shares a basic structure (called the C1) with cars from Mazda and Ford. However, even though the offspring is being priced modestly, the C1 cars did not, by any measure, spring from a bare-bones mentality. Not only was C1 recipient of unprecedented engineering input from across the Ford empire-for instance, Volvo guided the development of the safety systems while Ford was given control of vehicle dynamics-Volvo invested $387 million to upgrade its factory in Ghent, Belgium, which will build the S40, S60 and the upcoming V50 sports wagon (see sidebar), that will reach showrooms in the second half of the year.
I drove the Swedish version of the C1 in southern Spain last fall, and the S40 exhibited the premium qualities of any contemporary, full-blooded Volvo. Question is, can Volvo successfully spring its premium act on a hipper, younger American consumer? It's a serious question, as Volvo says it expects to sell 28,000 S40s this year in America, by far the largest market. The next largest is Sweden and is projected to buy only about 5,000, while Britain, Germany and Spain will make up the balance of the 70,000 S40s predicted to be sold in its first year worldwide.
This optimism that there will be a warm U.S. welcome is being bolstered by aggressive pricing. The lesser of the two models being introduced this spring, the 2.4i, is equipped with a naturally aspirated 168-bhp inline 2.4-liter five-cylinder engine. The 2.4i will be challenging the under-$25,000 market with the sophisticated equipment and high content levels Americans have come to expect from the European imports. The top of the line, but which still should be well below $30,000, is the T5, sporting a turbocharged 218-bhp inline 2.5-liter five-cylinder engine. (To contrast, Mazda is selling its variant for around $13,000 for its base car to $17,000 for the top model, both with four-cylinder engines.)
Volvo developed its C1 using a system called "Volvo Intelligent Vehicle Architecture," (VIVA) plus it borrowed elements of the powertrain from its P2-platform cars, the S60, V70 and S80. In its broadest sense, VIVA denotes a fully integrated approach to vehicle design, with particular attention paid to safety, styling and driving characteristics. More specifically, VIVA's goal of delivering class-leading safety is achieved from multiple directions-a newly designed frontal structure; the design and placement of the new five-cylinder engines; addition of Volvo's vaunted Side Impact Protection System (SIPS); and the sporty yet stable dynamics elicited from a stiff chassis, wide track, long wheelbase and electronic handling aids.