Volvo's latest compact wagon debuted at the 2003 Bologna Motor Show in Italy. The automaker began selling the V50 in the summer of 2004, shortly after the comparably redesigned S40 sedan. The automaker says the V50 "blends Scandinavian style with Volvo engineering expertise." Manufactured in Belgium, the sport wagon targets younger buyers than its V40 predecessor.

A 2.4-liter inline-five-cylinder goes into the regular front-wheel-drive V50. The high-performance T5 edition gets a turbocharged inline-five and can be equipped with all-wheel drive. Prior V40 wagons used four-cylinder power. Both the V50 and S40 share technology with Ford and Mazda vehicles.

For 2006, steering-wheel audio controls are standard in the 2.4i model. Cupholders have been modified, the wheels are revised, and option packages have been restructured. T5 models with the six-speed-manual gearbox gain a "pushdown" function to engage Reverse gear.

As with the company's other products, safety and crashworthiness are principal themes. The V50 has a stiff body and features Volvo's Side Impact Protection System.