The 2010 Volvo S40 has filled a near-luxury niche below the BMW 3-Series and Mercedes C-Class. The S40 also has many similarities to the Mazada3 and European Ford Focus because of their shared platform. A difference between the above and the S40 is that it's more expensive and better equipped. Updated in 2008, it can come in FWD or AWD, and there's a choice between two engines and two transmissions.

The base engine for the 2010 S40 is a 2.4-liter inline five that delivers 168-hp. The premium T5 model produced 227-hp from the turbocharged 2.5-liter inline-five it has under the hood. External updates include Active Bi-Xenon headlamps, and slimmer tail lamps. Inside, the upholstery range has been expanded and redesigned at the base level.