Thanks for the reply. Mechanic said it was the axle that was dripping oil and it found the low spot there in the picture. He said he would take care of it as part of the clutch job {no cost to me}..

Hello. I just had a local mechanic replace the clutch on a 2007 S40 at around 100K miles. Upon driving the car through a heavy rain storm and then parking on my driveway, I noticed oil drips along the driveway and under the car. I jacked the car up and removed the debris panel under the engine and t...