Brand management is an art. It's easy to point out many manufacturers who have lost their way when trying to juggle various brands but Ford's ownership of Volvo has been largely exemplary. There have been a couple of minor slip-ups such as initially undercharging for the Volvo XC90 but the introduction of the Volvo S40 shows how subtle and effective good brand management can be.

If you've done your homework and are looking to buy a Volvo S40, you'll probably know by now that it shares a good deal of its DNA with Ford's latest Focus. It's no secret, but by the same token, it's not common knowledge. The last thing Volvo wanted when they launched the S40 was for a vast groundswell of opinion to build deriding it as an expensive way to buy a plushed-up Focus. Therefore when it was first introduced, there were only large-engined versions made available priced well out of Focus territory. As a result, the S40 seemed a car far removed from the humble Ford.

With this seed firmly planted in the collective consciousness, Volvo felt it right to start introducing more affordable versions, first with 1.8-litre petrol power and then with a pair of budget 1.6-litre petrol and diesel engines. It wasn't a new strategy. Ford oversaw a similar trick back when Jaguar introduced the X-TYPE. To differentiate it from the Mondeo, only the upspec all-wheel drive six-cylinder versions were initially launched. The front-wheel drive 2.0-litre model came later.

All this marketeering hasn't fooled us of course, so we're back to the original million dollar question: namely, whether Volvo's S40 is worth the premium over a Ford Focus. The two 1.6-litre engines in question here are available in a trio of trim levels. The petrol-powered version comes in S or R-Design Sport trim and kicks off at £13,750. The diesel prices at £16,795 for the S, £18,295 as an SE and £18,645 for the R-Design Sport. These prices pitch an S40 around £1,500 over and above an equivalently specified Focus, a premium offset somewhat by superior residual values. Although the Focus is undeniably a well-finished car, there can be few who get into the S40 and begrudge the additional asking price. It's one of the most beautifully designed cars in the sub £20,000 price bracket.

"The S40 1.6 models look a good deal more expensive than their price tags would suggest"

Volvo has made some small incremental improvements to the car's look and feel. At the front end, the chrome-framed grille has been reprofiled and features a bigger Volvo badge. Clear lensed headlights and a wider air intake look a little more distinctive, while at the back there's a revised LED tail light assembly as well as a modified bumper.

All too often, we hear about innovations in car design and what we really get is moderately incremental changes. The S40 features a number of styling touches which we've genuinely never seen before. The exterior won't get too many pulses racing, effectively resembling a shrunken S60, but the cabin is a delight. Volvo interiors are traditionally odd things. Although they work supremely well, they are often clunkily designed with scant regard for the sort of slickness that separates them from rivals. Little of the design flair we usually associate with the Scandinavians has traditionally seemed to translate into their cars. The 'spaceball' gear selector in the S60 showed that Volvo could come up with some neat ideas and the S40 takes the spaceball and runs with it. The key design feature is a centre console that's a softly contoured moulding featuring supremely easy to use controls and fresh air behind it. You can specify wood, aluminium, plastic or semi-transparent plastic finishes and everybody who gets in will notice it. This time around, the controls have been altered, while the centre tunnel storage area features a smaller handbrake and a revised armrest.

Despite the 1.6-litre cars being the entry level models, Volvo haven't skimped when it comes to safety and they claim that the S40 is as good to crash in as the flagship S80 saloon. Making a small car as safe as a big 'un takes some doing and it's only when you look at some of the finer points of how Volvo have achieved this that you realise quite what this commitment means. It involves casting the turbo housing as one with the exhaust manifold so that the engine is more compact when mounted transversely, giving more space for crush zones. It means developing the Intelligent Driver Information System which monitors how hard you're using the throttle, brakes and steering and will hold incoming telephone calls or satellite navigation instructions until things have calmed down so as not to distract you in the middle of a manoeuvre. It means using four different grades of high tensile steel for crash protection.

Both 1.6-litre engines are bang up to date, the petrol unit being a lightweight aluminium powerplant with fuel injection and a five speed gearbox. Peak power is rated at 100bhp with a sprint to 60mph taking 11.7 seconds. Fuel economy is pegged at 39.2mpg on the combined cycle and carbon dioxide emissions are a reasonable 171g/km. The diesel is also largely constructed of aluminium and features common rail technology and a variable geometry turbocharger. Business users will love the fact that it emits just 129g/km of carbon dioxide and also that it will eke 57.6 miles from a single gallon of derv. It's only a fraction slower to 60mph than the petrol engined model, dispatching the increment in just 11.8 seconds but its 240Nm torque figure puts even the 2.4-litre petrol S40 in the shade. It may be light but this diesel unit packs a hefty wallop.

Taken on an entirely rational basis, the Volvo S40 1.6-litre models don't at first glance represent stellar value for money. But look again. Check out the gaping void in the market between the likes of Focus-class cars and the BMW 1 Series and Audi A3 models and it's apparent that Volvo have pitched the car very cleverly. If you're looking for a car that's a cut above the norm but don't want to hand over silly money for a premium German saloon, the S40 is the prime contender.

TOP 5 S40 DEALS

The results below show the top S40 deals on buyacar

	Volvo S40 1.6 S 4dr Saloon
	ETR	Mthly £206	Saving £1,908	Price £12,082
	Volvo S40 1.6D SE 4dr Saloon
	ETR	Mthly £252	Saving £3,102	Price £15,188
	Volvo S40 1.6D R DESIGN Sport 4dr Saloon
	ETR	Mthly £258	Saving £3,193	Price £15,597
	Volvo S40 1.6D S 4dr Saloon
	ETR	Mthly £229	Saving £2,829	Price £13,961
	Volvo S40 1.6 R DESIGN Sport 4dr Saloon
	ETR	Mthly £250	Saving £2,304	Price £14,301

typical 10.69% APR

PCP finance quote over 48 months,  10,000 miles pa,  deposit of £1000