The S40 was refreshed for 2008. Improvements include improved audio systems, increased storage space and new safety features like emergency brake lights which flash rapidly during hard braking to alert traffic behind the car. The new S40 also comes with optional active bi-xenon headlights which point the light beam in the direction of the road as it curves (standard in SE Lux models). There is also an optional BLIS (blind spot information system) camera located on the side mirrors which alerts the driver of passing vehicles beside the car.
The T5 model received a new engine (the B5254T7) with a performance increase of 9 hp (6.7 kW), giving an output of 227 hp (169 kW). The D5 engine became available with a manual gearbox offering 400 Nm (300 ft-lb) of torque and an automatic transmission offering 350 Nm (260 ft-lb) in the second half of 2007.
Source: Wikipedia (original)