Volvo's Compact V40 Wagon Targets Gen X Buyers

Got story updates? Submit your updates here. ›

Volvo's smallest station wagon, the V40, is being pitched to a nascent Generation X audience. With a base price of $24,475, the V40 wagon is $4,000 less than the previous least-expensive Volvo model. Volvo is hoping to attract new, younger buyers with the 40-series lineup, which includes the S40 sedan. The V40 is chock-full of Volvo's safety features like airbags, traction control, and whiplash protection, but it also offers handsome styling and sporty handling that Volvo hopes will appeal to Gen X consumers.

Why it matters

The compact V40 wagon represents Volvo's effort to reach a younger, more tech-savvy demographic with a more affordable and stylish offering. As Volvo looks to expand its customer base beyond its traditional older, safety-conscious buyers, the V40 could help the brand connect with Generation X consumers who value safety but also want an engaging driving experience and modern design.

The details

Volvo developed the V40 wagon specifically for the U.S. market, aiming to attract Gen X buyers aged 25-40 who are comfortable with technology and want a practical yet stylish vehicle. While the V40 shares the same suspension setup as the S40 sedan, Volvo has also developed a racing version for the British Touring Car Championship, showcasing the model's sporty capabilities. The V40 offers 61 cubic feet of cargo space with the rear seats folded, though the high liftover height may be a drawback. Volvo also offers an optional integrated child booster seat system for the rear outboard positions.

• The V40 and S40 models were in showrooms in August 2000 and deliveries started in September.
• Volvo hopes to sell 25,000 to 30,000 40-series cars in the first year of sales.

What they’re saying