The S40 was the result of a joint-venture between Volvo Cars and Mitsubishi; the two companies built their own series of cars on a common technical platform side by side in the Dutch NedCar plant. With the S40, Volvo offered the same comfort and safety levels in compact size as the drivers of the larger 850 had already enjoyed for some years.
With the C30, Volvo made its debut in the segment for two-door premium cars. The sporty design, with two doors, four individual seats, and a glass tailgate, gave a young and dynamic group of customers "a Volvo of their own".