"We can offer our customers the large car's properties in a compact format. This, combined with an exciting design and exceptional road manners, makes the new S40 sedan and V50 wagon highly potent challengers in their segments," says Hans-Olov Olsson, Volvo Car President and CEO.

Expanding the Volvo brand toward a younger age spectrum is an important part of Volvo Cars' strategy - and it is naturally particularly important that the S40 and V50 models appeals to youthful buyers.

"We want to attract customers into the Volvo family as early as possible, and this all-new S40 and new V50 will definitely attract a new, younger buyer," comments Hans-Olov Olsson.

Annual target 70,000 S40s, 70,000 V50s
Volvo Car estimates global market demand for the all-new S40 to reach 70,000 cars, with approximately 20,000 S40s to be sold in the United States. Sales targets in Australia are conservatively set at around 400 S40s in the remaining half year of 2004.

S40 will be Volvo Car Australia's most popular model, and possibly the most important model. It is the step-in point to the Volvo car range that now includes the new XC90, the new XC70 Lifestyle Edition, the just-released Activity S60 2.5T and V70 2.5T, as well as the impressive V50 wagon.

Volvo Car Australia predicts V50 sales volumes at 200 vehicles in the remaining half year of 2004.

S40 and V50 are both built by Volvo at a recently renovated production plant in Ghent, Belgium. Volvo's production operations in Born in the Netherlands cease with the phasing out of the previous Volvo S40 and V40 models.

Volvo Car has invested $540 million (340 million Euros) in the Ghent factory, which when fully extended will be the company's largest production plant with an annual capacity of 270,000 cars.

In addition to the new S40 and new V50, the Ghent factory will also build the S60 sedan, while the production of the Volvo V70 wagon will be moved to the Torslanda factory in Göteborg, Sweden. The Volvo XC70, Volvo S80 luxury sedan and Volvo XC90 are also built in Torslanda.

More for your money in S40 2.4 and V50 2.4
The new S40 and new V50 will be priced slightly higher than the current Volvo S40 and V40. The step-in pricing is more than compensated by a higher entry-point specification and more thrilling performance.

In terms of buying power, the new S40 and new V50 are equipped as standard with features such as climate control air-conditioning, cruise control, performance sound system (with six speakers and a single CD), integrated rear seat child booster cushions, high-tech Dala T-Tec upholstery, and convenience features such as home safe lighting and puddle lights integrated into the side mirrors.

Let's mention too that the step-in S40 and V50 models are now powered by a refined 2.4-litre inline five-cylinder engine producing 125kW and 230Nm of torque. The power offering increases by 25 percent and torque increases by 21 percent in the new S40.

Also, the standard wheel size is 16x6.5-inch (alloy) with a 205-55 91W tyre.

Most of the options that can be specified on the larger Volvo S80 and S60 are also available to buyers of the new S40 and V50. This applies, for instance, to an integrated telephone, navigation system and the DSTC (Dynamic Stability and Traction Control) anti-skid system.