Short answer, they started the switch over with the 850’s (1995), which became the S70. Since then every S and V model Volvo is FWD, except the S90.

Long answer to clear some confusion:

You have to set your point of reference;  In Europe Volvo Holland, was making front wheel cars for some time (340, 440, etc).  They were basically econo-boxes meant for city, and short intercity audience.  Volvo then asked them to make a larger car, and they came up with the Volvo 850 as a base design, which was then further developed by Volvo, Sweden.

All the Volvo FWD cars used the manufacturing techniques that Volvo Holland developed, which means the engine sits on a complete sub-frame (complete separate from the unibody) that is then installed from below.  So the Volvo 850’s were the first FWD Volvo’s to hit the States. Right now, all Volvo’s are FWD cars.

Up to that point all Volvo’s were RWD.  The Volvo in the video is a 940/960, which is just an updated body style on the 740/760.  So the last RWD Volvo’s were the:

• 240/260 (the 200 models which we all think of when someone thinks Volvo, were made into the mid 90’s!)
• 940/960
• S90/V90

The engine in the video is a 2.3L 16 valve (DOHC) interference engine. The same slant-4 cast-iron engine that Volvo has been using since the 60’s, which came in 2.0L through 2.4L varieties throughout the years, but with a DOHC head.

What Mihai is probably referring to are the PRV development projects (Peugeot, Renault, Volvo) which was more a component collaboration, which resulted in the horrible V6 engine that was used in the 760/960, Peugeot 504, and several others). The companies never designed an entire car together, but were trying to enjoy economies of scale by using the same components.