VOLVO’S latest-generation small-car, the S40, has suffered from high pricing for too long. At the beginning of 2006, the Swedes slashed $10,000 from the price, deleted a few non-necessities from the base specification, and – in the process – have created one of the compact prestige bargains of the year. Before buying a BMW 1 Series, Audi A3, Honda Accord Euro or Mercedes A-class or B-class, we strongly recommend checking the new S40 S out.