Volvo's smallest sedan, the compact S40, comes in 2.4i and T5 trim levels, the latter offered in all- as well as front-wheel drive. A few years past a full redesign, the S40 and its V50 wagon sister have been substantially freshened for 2008. The exterior is refinished, cabin storage is improved and there are new safety and convenience features. The T5 gets more power from the same engine but loses its choice of transmissions. Competitors include the Audi A3, Subaru WRX and Volkswagen GTI.