Second generation (2004-2007) Phase 1
Introduced in the middle of the 2004 model year, the second generation S40 (known as the 2004.5 Volvo S40) introduced a new design based on the Volvo P1 platform built at the Volvo Cars factory in Ghent, Belgium. At the same time, the V40 was replaced by the V50 estate, also based on the P1 platform and built in Ghent. The S40 was nominated for the World Car of the Year award for 2005 and won the Canadian Car of the Year Best New Sport Compact award for 2005. It has also been elected the South African Car of the Year for 2005 by the South African Guild of Motoring Journalists.
The chassis for this car and the majority of its components were developed by Volvo, some the the suspension was developed by Ford of Europe but still tweeked by Volvo, and the powertrain was developed by Mazda. Even although the top of the line S40 T5 AWD powertrain is still made by Volvo as well as the 2.4 and 2.4i.
The S40 T5 (one of the several variants of the S40) features a 2.5 L (2521 cc) five-cylinder fuel injected engine with a light-pressure turbocharger. The valvetrain has four valves per cylinder and is a DOHC design. The engine is transversely mounted at the front of the vehicle and drives the front wheels, as was with the first generation.