Hi,
There are two different 1.8 engines fitted to S/V40's
Engine one is the 4cyl petrol variant of Volvo's modula engine as fitted to all the other Volvo models in 4, 5 and 6 cylinder form. This engine is very reliable (as long as it's maintained properly like all engines) and should give into the early 200,000 miles before headgasket issues should show themselves. As it's part of the modula range the cambelt waterpump etc is the same as the bigger models so parts are readily available. Also there is a lot of information and knowledge as it's effective the same info minus a cylinder of the famous five.
Engine two is Mitsubishi's Gasoline Direct Injection engine aka the GDI. This has a reputation for poor reliability as it was in the infancy of the technology when it went into the cars. They can be reliable if maintained to a decent standard and the horrible jobs not skipped. The engine is a unit born out of tightening emissions legislation, and not too keen on only pootling about town. Needs an Italian tuneup every now and then. Parts can be a bit harder to source and less people make them so cost more.
Either way the car it's bolted to will sure you well. Most on the forum would pick the Volvo engine.
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