Volvo intends to begin mass production in 2009 of a hybrid diesel-electric truck engine which would cut fuel consumption by up to 35%, the truckmaker said on Friday.
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According to Reuters, the Swedish group said that rising oil prices and political efforts to fight global warming by reducing emissions of carbon dioxide meant it now saw potential for a commercial launch of a more expensive, but more fuel-efficient hybrid truck engine. The new engine runs on both diesel and electric power from a battery.
“The higher capital cost is compensated by lower fuel costs,” Volvo chief executive Leif Johansson reportedly told a news conference. “And then we are not counting on even higher fuel prices which could very well materialise, according to some forecasts.”
Volvo said that the new engine would be economically viable mainly for short-haul trucks, buses and construction equipment as electric propulsion was used mainly in connection with starting and stopping and at low speeds, Reuters said.
“These are large segments of the market. We are talking about half of the overall heavy truck market and perhaps as much as 75% of the bus market and 100% of construction equipment,” Johansson told the news agency on the sidelines of the conference.
“The production volumes will to a great extent depend on the oil price. If the oil price stays at the current level or rises I am convinced that (this product) will have a major impact. We are talking at least several tens of thousands of vehicles (per year).”
Volvo said it had invested 350m to 400m Swedish crowns (US$44.4m to $50.8m) in developing the engine and related components and would spend “one or more” billions in setting up serial production, Reuters added.
