The aim of the project is to develop and demonstrate the next-generation hybrid cars. The research consortium will create a fleet of 10 plug-in hybrids that can be recharged directly from a mains wall socket.
Fredrik Arp, president and CEO of Volvo Car Corporation, said: “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.”
Over a five-year period, Volvo will invest just over £912 million in development aimed at reducing fuel consumption and emissions.
Volvo already offers Flexifuel engines and this year will see the launch of car models that release less than 120 grams of carbon dioxide per kilometre.