I've just completed doing the brake job on my '04 S40 T5. Once I figured out what all needed to be done it was simple. You don't even need any special tools but there are two that will make the job even easier.

Tools:
3/4" socket - for the lug nuts
13mm box end wrench - for the caliper mounting bolts
Disk Brake Caliper Service Kit (H/F 69053) - optional but handy
Brake Cleaner
Paper Towels

Parts:
Rear Brake Pads (Akebono EUR1095, what I installed)
Rear Brake Disks (Pilenga W0133-1612951, what I installed)

Start by properly jacking your car:


Here's where you lift


This was a suitable jack stand location


My disks were so worn that the caliper wouldn't slide off. A ridge had built up at the outer edge of the disk that was keeping me from pulling the caliper off. I discovered this on the other side (which I did first). The piston will NOT compress to give you room to clear this ridge. More on this later. What I did was grind the ridge down over an arc length of the disk for clearance.


You can see the difference the grinding made. The inboard ridge was worse on the driver side.


There are two bolts. One on top (shown) and the other on the bottom. The top is the harder of the two to get at and makes the following tool very convenient. I used a reversible ratcheting box end wrench (13mm). I love these things but always use a fixed end wrench for the breaking loose part.


All that prep work pays off as the caliper slides off very easily.


Pop out the old pads and pull off the disk. I had to give the disk a couple of whacks to break it loose from the hub center. Note that the inner pad is nearly gone and that there is a shiny bit where the inboard ridge had been grinding on the pad backing. This grinding noise is what clued me into needing new pads (and disks).


Here is the beginning of the tricky bit. The piston must be rotated as it is compressed in order to reset the caliper. The reason for this has something to do with the fact that the E-brake mechanism is built into the caliper. The two holes on the piston face are your second clue (the first is the integrated E-brake).


This is the second optional but convenient tool for this job. I bought mine for about $35 at Harbor Freight with a 20% off coupon. The full name of the tool is 18 Piece Disc Brake Pad And Caliper Service Tool Kit and the part number is 69053.


You need adaptor M and it is held in place by an integral magnet. I used the right hand thread jacking screw for compressing and turning the piston. This was used on the calipers on both sides of the car.


Because my pads were so worn the piston was too far extended for me to immediately start using the tool in place. I had to begin the job by using my muscles. I had to press and turn to get myself some room. This is why the tool is 'optional'. I read where someone had used a pair of needle nose pliers to press and turn the piston. I can see how this would work but I like to use the right tool if I can.


Once I had given myself some room I threaded the handle of the tool in under the carrier retainer spring.


Line up the adapter pins.


Start turning to compress the piston.


You will need to use a wrench to slack off on the jacking screw. This is because you don't want to turn the piston back out again by counter rotating the jacking screw handle.


Push the caliper carrier frame back flush with the caliper body.


Grease up the back sides of the brake pads so they won't squeal. The pad with the spring on the top will be the one touching the piston. You only need to put grease where the pad backs will touch the caliper.


Install the outboard pad first. You may need to pry down on the caliper carrier to get the pad to fully seat. If you don't make sure the outboard pad is fully seated there won't be enough room to squeeze in the inboard pad. You may not think there is enough room to slip the inboard pad in but it is possible. I found a sort of rocking motion with one end of the pad already in the caliper worked best. Brute force is not required! I had a bunch of trouble with this on the first one but it was easy on the second.


Slide the caliper over the brake disk. It should go very easily. You'll note I painted my grinding boo-boo on the disk sheild. Reinstall and tighten up the two carrier bolts (add some Loc-tite) and you're done. Reward yourself with something nice because you saved a bunch of money.

Addendum:
*I have been buying my parts from Discount Auto Parts Online -- PartsGeek.com - Domestic & Import Auto Parts Warehouse and frankly can't believe the prices. All the parts are high quality (better than anything I've found locally) and the shipping is quick. I can't recommend them enough.
*I think my grinding for clearance trick is appropriate even if you're going to reuse the disks. I say this because when you have the disks surfaced it won't matter anyway.
*You can find hi-res versions of all these plus a couple pictures at:
2004 S40 T5 Rear Brake Job Photos by ayedurand | Photobucket
*I think it took me longer to do this write-up than to do the brakes.

 

If you remove the slide pins so the caliper comes off the retaining bracket you won't have to grind the rotors. Then you can also clean and lube the retainer bracket like you should.

 

Very good write-up. Thank you.

 

well, er, yes of course you could just pull the pins out (I didn't think of that). So ignore the first couple of steps regarding the grinding stuff.

Write up = B+.

 

I would paint the hubs and edges of the new rotors so they don't rust like the old ones. I did it on my rotors with universal satin black spray paint since I had it laying around. 15,000 miles later they still look like the day I painted them.