Sweden and US Expand Cooperation with Volvo on Alt Fuel and Hybrid R&D

30 June 2008

The governments of Sweden and the US are extending their cooperation with the Volvo Group on R&D on alternative fuels and hybrid solutions with a combined US$18 million grant from the US Department of Energy and the Swedish Energy Agency. Volvo will provide a matching $18 million, for a combined $36 million investment.

The new program will run for three years and is an extension of the one-year research and cooperation agreement signed between the Volvo Group and the Swedish and US governments in June 2007. (Earlier post.) The supported work is aimed at reducing heavy vehicles’ use of fossil fuels through research and development projects in the areas of energy efficiency, drivelines for alternative fuels and hybrid solutions.

The climate issue and increasing fuel prices make energy use and energy efficiency some of the most important societal issues of our time. The transportation industry has a special responsibility and this research and development co-operation with the US Government is crucial in our efforts to develop the drivetrains and technology required by both our customers and society as a whole.

—Leif Johansson, CEO of the Volvo Group

The US government and the Swedish Energy Agency intend to each invest a total of US$9 million during the three years of the program.