From 1995 to 1999, the company manufactured the 2.0-liter 16-valve Volvo B4204S engine, which was fitted to pre-styling S40 sedan and first-generation V40 station wagon models. The B4204S2 modification, which included a phase regulator, had the N7Q index on Renault models.

B4204S, B4204T, B5202S, B5204T, and B5204T8 are members of the 2.0-liter Modular engine family.
The engine was mounted on:
- Volvo S40 I (644) in 1995 – 1999;
- Volvo V40 I (645) in 1995 – 1999.
Specifications
| Production years | 1995-1999 |
| Displacement, cc | 1948 |
| Fuel system | injector |
| Power output, hp | 140 |
| Torque output, Nm | 183 |
| Cylinder block | aluminum R4 |
| Block head | aluminum 16v |
| Cylinder bore, mm | 83 |
| Piston stroke, mm | 90 |
| Compression ratio | 10.5 |
| Features | DOHC |
| Hydraulic lifters | yes |
| Timing drive | belt |
| Phase regulator | no |
| Turbocharging | no |
| Recommended engine oil | 5W-40 |
| Engine oil capacity, liter | 5.4 |
| Fuel type | petrol |
| Euro standards | EURO 2 |
| Fuel consumption, L/100 km (for Volvo S40 1999) — city — highway — combined |
10.7 6.2 8.2 |
| Engine lifespan, km | ~330 000 |
Disadvantages of the B4204S engine
This version of the motor without phase control was the most straightforward and dependable in the series; on specialized forums, people frequently complain about the oil burner and clogged crankcase ventilation; the timing belt frequently serves less than the recommended 90,000 km, and when it breaks, the valves bend; a broken alternator belt is also dangerous in this situation because it typically falls under the timing belt; and hydraulic lifters can knock up to 100,000 km and cannot handle inexpensive lubricants.
