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Volvo helps Sweden, U.S. build hybrids and research biofuel

STOCKHOLM, Sweden -- The Volvo Group says it has embarked on a project with the Swedish and American governments to build heavy-duty powertains based on alternative fuels.

The cooperation is a result of a research and development agreement signed in June 2006 by the Swedish and U.S. Governments. Volvo will be a partner in a number of projects, including further development of hybrid technology for heavy vehicles and analyses of how various biofuels impact diesel engines.

"We believe that being involved in this unique cooperation project will be extremely stimulating," says Jan-Eric Sundgren, member of Volvo Group Executive Committee. "This means that we can implement a number of projects within the environmental area that would otherwise have not been possible. We hope that our participation will lead to more cooperation aimed at sustainable development."

Among others, Volvo subsidiary Mack Trucks is also involved in similar projects, which will be co-financed by the Volvo Group, the Sweden government and Washington.

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