Today Volvo manufactures its own 2.4l 5 cylinder diesel engines in Skövde Sweden. They also use 4 cylinder engines from Ford/PSA.
Volvo's own engines
D5 185hp/400Nm
D5 180hp/350Nm (special version for the P1-platform applications, ie S40, V50 and C70)
2.4D 163hp/340Nm
New D5 205hp/420Nm (replacing 185hp engine)
New 2.4D 175hp/420Nm (replacing 163hp engine)
Ford/PSA engines
2.0D 136hp/320Nm
1.6D 109hp/240Nm