March 17, 2008

Volvo Launches Unique Cooperation for the Development of Plug-In Hybrid Cars in Sweden

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GÖTEBORG, SWEDEN – Together with electricity provider Vattenfall, Saab Automobile, ETC, and the Swedish state, Volvo Car Corporation is launching a joint broad-based research venture to develop spearhead technology in the area of plug-in hybrid cars.

Sweden will be the arena for the field tests.

“I see this project as a positive further development of sustainable personal transport. We have a unique opportunity to take the lead when it comes to innovations for advanced green-car technology,” said Fredrik Arp, president and CEO of Volvo Car Corporation.

The aim of the project, which is being carried out jointly by Volvo Car Corporation, Saab Automobile, Vattenfall, and ETC, is to develop and demonstrate the next-generation hybrid cars. A fleet of 10 plug-in hybrids will be produced that can be recharged directly from the mains wall socket.

Over a five-year period, Volvo will invest just over 11 billion SEK in development aimed at reducing fuel consumption and emissions. Volvo already offers its customers one of the industry’s widest ranges of flexifuel engines. In parallel, the company is continuing to enhance the efficiency of its petrol- and diesel-powered cars. 2008 will see the launch of car models that release less than 120 grams of carbon dioxide per kilometer.

Volvo is also focusing intensively on hybrid technology. The company will introduce hybrid variants where an electric motor supports the combustion engine. The Volvo C30 ReCharge Concept car cuts emissions of carbon dioxide by about 65 percent compared with the hybrid cars available on the market today, the company said. And if the electricity comes from CO₂-sustainable sources, such as hydropower and windpower, this figure improves still further.

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