The Volvo S40 was launched in autumn 2003 as a somewhat larger sedan evolution of its Dutch-built predecessor. The design language and the specification level harmonised more closely with the larger Volvo S60. The aim was to give customers large-car properties in a compact format and with clearly sporty overtones.
The Volvo V50 was launched in early 2004 as a somewhat larger estate evolution of its Dutch-built V40 predecessor. The design language and the specification level harmonised more closely with the larger Volvo V70 estate car. The aim was to give customers large-car properties in a compact format and with clearly sporty overtones.
With the C30, Volvo made its debut in the segment for two-door premium cars. The sporty design, with two doors, four individual seats, and a glass tailgate, gave a young and dynamic group of customers "a Volvo of their own".
The S40 was the result of a joint-venture between Volvo Cars and Mitsubishi; the two companies built their own series of cars on a common technical platform side by side in the Dutch NedCar plant. With the S40, Volvo offered the same comfort and safety levels in compact size as the drivers of the larger 850 had already enjoyed for some years.