Editor's notes:
The V50 is the wagon version of the S40 sedan. Introduced last year, the V50 arrives when many people are searching for a fuel-efficient alternative to their SUV. Despite its modest size the V50 can accommodate the needs of most couples and small families. It provides good cargo room, Volvo's renowned reputation for safety, the option of all-wheel drive, and a fun-to-drive quotient no SUV could ever hope to achieve.

What's new for 2006
Changes to the V50 are relatively cosmetic in nature. The 2.4i and T5 get new 16-inch alloy wheels, while steering-wheel audio controls are now standard across the line. The T5's six-speed manual touts a new pushdown feature to engage reverse.

You'll like this car if...
Volvo has a well-established reputation for safety. The V50 continues that emphasis with its side-impact airbags, side-curtain airbags and Whiplash Protection Seating System, among other safety features. In addition to the cargo-hauling capabilities of a wagon and appealing gas-mileage estimates, Volvo promises a healthy dose of performance with the turbocharged T5.

You may not like this car if...
Volvos certainly are shapelier than they used to be, but the Swedish automaker still retains a hard-to-shake reputation for practical stodginess despite a proliferation of energetic turbocharged powertrains in its vehicles. Like the S40 sedan, the V50 is also somewhat snug, especially in the center rear position, and the ride in the sporty T5 edition can get a bit rowdy at times.

Exterior
Though built in Belgium rather than Sweden, the V50 closely resembles other, larger Volvo models. Up front it's a virtual twin to the S40 sedan. Both Volvos are related to the European Ford Focus and the Mazda3. The V50 is an evolution of the sportswagon "design language" that began with the larger V70 family wagon, but brandishes some "aggressive lines." Certain design characteristics are borrowed from classic Volvos, including the sporty 1800ES of the 1960s. Intelligent Design Architecture includes eight "exceptionally rigid" cross members for enhanced side-impact protection.

Interior
Basic in nature, the V50's interior reflects the spartan themes popular in Scandinavian automobiles. Billed as a "design icon," the ultra-slim center console is claimed to be the first of its kind and is available with optional aluminum facing. Volvo promotes "ergonomically designed" seating, including 60/40 split folding rear seats. Some controls on the console aren't quite as logical as they appear at a glance. Though roomy enough up front, the V50 conveys a cozy sensation. Cargo space totals 37.4 cubic feet with the back seat up, and 62.9 cubic feet with seat folded.

Notable standard and optional equipment
In basic 2.4i form, the V50 has a five-speed automatic transmission, air conditioning, alarm, immobilizer, keyless remote entry, rear fog lamps, and CD player. Side-impact and curtain-style airbags are standard. In addition to a turbocharged engine, the T5 adds an eight-way power driver's seat and steering-wheel audio controls. Alloy wheels hold standard 16-inch tires, but 17-inch rubber is available. Antilock braking incorporates electronic brake-force distribution and Brake Assist for more effective panic stops. A Dynamic Sport Suspension is standard on the all-wheel-drive T5, as is Dynamic Stability and Traction Control.

Options
Adding an automatic transmission to the T5 costs an extra $1,200. Separate options include bi-xenon high-intensity-discharge headlights, a $2,120 navigation system, leather upholstery at $1,200, laminated side windows, and rear child seats. Dynamic Stability and Traction Control adds $695 to the total. A Dynamic Trim Package for the T5 includes special spoilers, bigger wheels, and dual exhaust tips. Premium, Climate, Convenience, and Sport Packages may be installed, and a 445-watt stereo with six-CD changer is optional.

Pricing notes
The front-wheel-drive 2.4i stickers for $26,900 (including destination charge). Moving up to the turbocharged T5 boosts the Manufacturer's Suggested Retail Price (MSRP) to $28,535. Adding all-wheel drive to the T5 calls for an outlay of $30,310. A check of the New Car Blue Book Value shows customers are paying about $800 to $1000 over dealer invoice, depending on options. The V50 doesn't have many competitors and its resale value can be considered slightly better than average. Vehicles such as Audi's new A3, Subaru's WRX wagon and Mazda's 3 s hatchback all offer superior expected resale value at 24, 36 and 48 month intervals.

Driving impressions
Although the basic driving experience differs little from Volvo's S40 sedan, the V50 feels more serious and solid. Both are civilized, quiet and spirited compacts, especially with the more potent turbocharged engine. On snow-packed and icy surfaces, the all-wheel-drive V50 clings with confidence. Although a V50 is as refined overall as Volvo's bigger V70 wagon, the ride in an all-wheel-drive wagon can get rough on harsher surfaces. Even rolling through moderate imperfections may feel a little jittery at times. Nimble in urban settings and stable on the road, the V50 T5 reacts quickly to the steering wheel, perhaps more quickly than staid drivers might find comfortable.

Our favorite features
All-Wheel Drive
Anyone in the snow belt or who drives frequently on wet or slippery surfaces should appreciate the merits of all-wheel drive. Too bad it isn't available in the non-turbocharged 2.4i model.

Turbocharged Engine in T5
Like the all-wheel-drive system, Volvo's turbocharged engine does its job eagerly and effortlessly, without attracting undue attention to itself.

Under The Hood
The V50's 2.4-liter in-line five-cylinder engine provides solid if unspectacular performance. The sports-minded T5 is equipped with a modified, turbocharged version of the same engine offering 50 additional horsepower and, more important, better torque for quicker acceleration.

2.4-liter in-line 5
168 horsepower @ 6000 rpm
170 lb.-ft. of torque @ 4400 rpm
EPA city/highway fuel economy: 22/30 (manual), 22/30 (automatic)

2.5-liter in-line 5 Turbocharged
218 horsepower @ 5000 rpm
236 lb.-ft. of torque @ 4800 rpm
EPA city/highway fuel economy: 22/32 (FWD manual), 22/31 (FWD automatic), 19/26
(AWD manual), 20/28 (AWD automatic)