With the 2005 V50, Volvo wants to attract youthful professionals who desire a stylish, safe, versatile, and fun-to-drive vehicle. Volvo, of course, is not alone in this endeavor. Several other European luxury automakers are also stretching down market in an effort to capture buyers at younger ages, hoping to capitalize on the brand loyalty that consumers display over the course of their lifetimes. Theoretically, as these buyers mature, start families, and earn more money, they will trade their entry-level luxury-brand vehicles for larger, more expensive models, and will remain customers for decades. Most of these new entry-luxury European models are hatchbacks, such as the Audi A3 and BMW's Mini Cooper. For now, the 2005 S40 sedan and V50 wagon are charged with exposing Volvo to the underpaid masses, at least until the smaller 2007 Volvo C30 hatchback arrives in a couple of years.

After a day spent behind the wheel of the V50 T5 AWD, the top model in the lineup, it's clear that Volvo has successfully met its marketing goals. The question is: Will the young and upwardly mobile embrace a compact station wagon that, when fully equipped, easily surpasses $35,000?

Dynamically, the V50 appears to be worth every penny, and we'd recommend the car to anyone interested in this type of vehicle. But the playing field is flooded not only with worthy competitors but also heavily subsidized leasing programs. In a country where brand prestige is more important than engineering, safety, value, and utility, this marketplace reality and consumer mentality makes it harder for Volvo to expand beyond its core group of safety-minded consumers.