Ergonomically, this car is excellent. High-quality switchgear is attractive and easy to use. Rotary dials have a nice feel with soft clicks between settings. It's all mounted on attractive gray dash panels. There's a nice rubber-covered cubby hole in front of the shifter that does a good job of holding change, wallets, or sunglass cases. Gauges are neatly designed with a gray-on-gray theme, although some people might find the lettering a little small to see. An onboard computer (Premium Package) provides useful trip information such as average speed and average fuel consumption (28 mpg while we drove the car).

The heated seats are comfortable, but adjusting to a comfortable position took awhile. Front headroom and legroom are good, but tall passengers will find themselves cramped in the rear seats unless the driver is short. Access through the doors is fine, as they open wider than in some other cars.

Access to the trunk is somewhat restricted because the rear window slopes a long way back. Trunk capacity, however, is quite good at 13.2 cubic feet (about the same as the Honda Accord). The rear seat splits 70/30 and can be folded down to substantially increase carrying capacity.

The V40 wagon has a total cargo volume of 61.3 cubic feet with the rear seats folded down, which is slightly less than the VW Passat. Cargo nets and belts are provided in S40 and V40 for securing stuff.

Safety was a key consideration in designing the S40. A sophisticated dual-stage airbag system senses whether each seat is occupied, and whether the occupant is wearing a seat belt. It also sorts impacts into five different trigger thresholds. The system then decides at each individual seat whether to activate the seat-belt pre-tensioner and/or the airbag, plus whether to inflate the airbag at 100-percent or 70-percent speed. With this system, a belted front-seat occupant would be subjected to a 100-percent airbag inflation only in the severest (level-five) crash.

Additionally, S40 comes with side-impact airbags (SIPS) and a whiplash protection system (WHIPS). Development by Volvo has lead to a second-generation SIPS that activates in different ways depending on the type of accident. Volvo claims the system is effectively two airbags in one. Inflatable curtain (IC) air bags, which provide additional head protection, are standard equipment.

WHIPS is the same whiplash protection system that is found in bigger Volvos. It is activated when the occupant of a front seat is forced back against the backrest in a rear-end collision. The body is cushioned by the backrest, which moves back in a parallel movement. It helps prevent rebounding of the body milliseconds after the initial impact.