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The S40 sedan and “V” wagon were introduced in Europe for 1996 prior to arriving in North America in late 1999. Both models shared numerous components, including a Mitsubishi-built turbocharged four-cylinder engine. Also standard was a four-speed automatic transmission (upgraded to a five-speed in 2001) adapted from Volvo’s larger 70-series cars. Part way into the 2004 model year, Volvo rolled out its all-new Swedish-built S40 sedan and V50 wagon that featured a 168-horsepower 2.4-liter five-cylinder and an optional 218-horsepower 2.5-liter turbo-charged five-cylinder that was upgraded to 227 horsepower for the 2008 model year.