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As an owner of an earlier S40, and having driven numerous new faulty S40's whilst mine has been in for repair (one loan cars bonnet catch opened whilst on the motorway). I can say with total conviction that you should avoid the S/V40 at all costs.
When I purchased the car I was well aware of the Mitusbishi/Volvo Nedcar plant being used to build the car and thought, rather foolishly, that Mitsubishi's involvement would result in a reliable car. When the S40 first came out, the launch was delayed whilst Volvo (and I think TWR) sorted out problems on the production line - this was supposed to cure the first batch of cars numerous squeeks and rattles - it clearly didn't help anything else . I do know of other S40's here in the UK with exactly the same faults - I was even offered another one, as a replacement for my own which had the same front suspension failure
My own car has had one fault or another every day for the last 12 months. It may be better in the US where road surfaces are infinately better, but it is quite simply unable to cope with British Roads; at the moment I am awaiting yet another repair to my failed rear suspension. This is added to a new steering rack, ball joints, bushes, switch gear, seized brakes, water hoses, and the list goes on. It also blows bulbs like they're going out of fashion.
The latest Phase II S/V40's have a new front suspension layout, revised motors, and a whole host of changes - but they remain built in the historically bad factory in Holland.
Feel free to make you own mind up, but don't say you haven't been warned.
Cheers
Chris
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