The Volvo S40 and V50 are essentially the same car underneath, so when it comes to the driving, what goes for the S40 sedan also goes for V50 wagon. The V50 performs identically to the S40, despite the extra bit of utility that goes with its wagon body style.

These are enjoyable cars to drive, especially on winding roads where they are nimble and lively. The base 2.4i is an excellent choice for drivers who want a safe small car with good driving dynamics and fuel economy. They are a bit soft on power, however. The T5 models offer better acceleration with their turbocharged engines, and livelier handling response.

The S40 2.4i and V50 2.4i offer a nice balance of ride and handling. They're smooth, with enough power for most drivers. Even with the five-speed automatic, the 2.4i delivers decent acceleration and fuel economy: an EPA-estimated 20/31 mpg City/Highway for both the S40 and V50.

With the automatic, we found it takes a hard mash to the gas pedal to get it really go. It's slightly quicker with the manual transmission. The S40 can accelerate from 0 to 60 mph in 7.7 seconds, according to Volvo, vs. 8.4 seconds for the automatic. With the manual transmission, the S40 and V50 a slightly better EPA city estimate at an equally slight expense in highway economy: 21/29 mpg. So, if you're a skilled driver, you can match the fuel economy of the automatic but have a significantly quicker car when you want to go a bit more quickly.

The steering is boosted just right in these cars, with light, distinct and controlled feedback. It feels firm and tight, offering the right amount of resistance. The torque steer often found in front-wheel-drive cars is not apparent in these Volvos, even with the higher-power, turbocharged T5 models.

The T5 version's turbocharged engine is wonderfully smooth, with 227 peak horsepower. Acceleration is quick and linear and the power band is broad, so the engine enthusiastically finds more speed no matter how fast you're already going. At 80 miles per hour it's only loafing along at 2500 rpm, so there's a lot of power to spare and pleasant, quiet cruising to boot. The T5 is comfortable at high speed, very stable and relaxed, which we learned on some wide-open California desert roads. It's stable at 100 mph and doesn't even feel like a front-wheel-drive car. EPA estimates are 21/30 mpg City/Highway.

With plenty of power on tap, the electronically controlled five-speed automatic decides quickly which gear it needs and shifts down smoothly when you step on the gas. The upshift from fourth to fifth gear was so smooth that we only knew it occurred because we watched the tachometer needle drop. The automatic features a manual shift mode called Geartronic, and in the manual mode, it actually lets the driver control what gear it's in, without stepping in and overriding his or her wishes.

The T5 turns into corners a little more crisply than the 2.4i. It also leans less to one side or the other as g force builds, but it's hardly stiff. We drove it for a stretch at 30-40 mph over a terrible surface with a lot of big rough patches, and the suspension felt firm but never jarring. We could feel the wheels moving, but the impact didn't travel up through the car's body to our hands or the seat of our pants. The suspension isn't as firm as that of, say, a BMW, so it doesn't respond as crisply when driven very hard. The benefit is the Volvo's smoother ride quality.

The T5 AWD models have the advantage of all-wheel drive for improved all-weather safety and handling. The all-wheel drive helps maximize traction in slick, slushy circumstances by sending power to the wheels with the most friction underneath, doing its utmost to maintain the T5's forward momentum. When driven hard on dry pavement, the all-wheel drive helps balance the T5's handling by shifting power to the rear wheels. That avoids overpowering the front tires.

The all-wheel drive has its drawbacks, to be sure, besides the additional cost at purchase. It adds weight and friction within the T5's drivetrain, so it reduces fuel mileage, even in circumstances when no one needs the all-wheel drive, which for most drivers is most of the time. EPA estimates for the T5 AWD automatic are 19/28 mpg City/Highway, in the S40 and 19/27 mpg in the V50.

The six-speed manual transmission, however, compensates for the effect of the additional weight of AWD on the S40's acceleration: 0-60 mph with the six-speed passes in 6.6 seconds, which is a tenth of a second quicker than the front-drive T5 automatic. EPA estimates for the manual AWD combination are 20/27 mpg for the S40 and 20/26 mpg for the V50. And while the front-wheel-drive sedan can handle foul weather, AWD makes the car more stable and easier to drive in wintry conditions, whether it's ice or snow or inconsistent.

We found the brakes strong, smooth and true. The disc brakes are plenty big for the size of the car (at 11.8 inches front and 11.0 inches rear). We performed a panic stop at 75 mph, and the anti-lock brake system dragged the car to a stop in a direct, confidence-inspiring manner, without a hint of skidding when we moved the steering wheel to the left or right.