Electricity provider Vattenfall, Saab Automobile, ETC, the Swedish state and Volvo Car Corporation are all involved in a new joint broad-based research venture to develop plug-in hybrid cars.


Field tests will take place in Sweden.


“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 Volvo Car CEO Fredrik Arp.


The aim of the project, which is being carried out jointly by Volvo, Saab, 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 domestic mains electricity.


“We want to be involved in setting up the rules for the future and to help build up broad-based competence in Sweden in this vital area,” said Arp.

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Over a five-year period, Volvo will invest about SEK11bn in development aimed at reducing fuel consumption and emissions.


In the medium term the company will introduce hybrid variants where an electric motor supports the combustion engine. In the longer term, plug-in hybrids will be introduced.


“Within the next decade, electric vehicles are going to be needed if we are to meet forthcoming CO2 legislation,” added Arp.