Just picked up my new S40 yesterday and there is already a problem, albeit a minor one. The driver's side visor is falling out of its socket when you turn it to shield your face from the sun coming in from the driver's side window. Not something I would expect to find on a brand new entry-level luxury car. Still, the car is great and the 170 hp on the base engine is plenty. Features are well thought out and functional and ride is secure and supple. There could still be more/larger storage bins, which I hear they are taking care of with the 2008 models. Other craftmanship appears good to great. Hopefully the visor will be the only issue in a long, carefree life of the car
8-way power driver's seat and stylish, T-tech seats with striking stitching. Simple and functional controls. Premium audio.
Better initial quality (the visor falling out is inexcusable). More and larger storage (they fixed this with the 2008 model).