Volvo is convinced that in the future, customers will continue to want safe, comfortable cars with good driving properties and generous load-carrying ability. Irrespective of whether they are powered by electricity or other fuels.

Plug-in hybrids are an attractive car type offering the user the best from both electric power and conventional drivelines: extremely low fuel consumption and CO2 levels, combined with a long range and high performance.

 ”The new Volvo plug-in will be a truly enjoyable car to drive, featuring Volvo’s high safety and comfort standards. At the same time, CO2 levels and fuel consumption will be as low as half that available on the market today.” says Stephen Odell, President and CEO of Volvo Car Corporation.

According to Volvo here are plug-in hybrid advantages:

• Fuel consumption, running costs and CO2 emissions are very low
• The car is a “normal” Volvo, with all its customary good properties
• It is conveniently recharged at home via a regular wall socket
• It is an enjoyable car to drive, offering high performance
• Electric power with CO2 levels close to zero

Electricity is highly suited as a car fuel. The electric motor has a high efficiency rating and consumes about one-fifth as much energy as a corresponding engine running on fossil fuel. Volvo’s plug-in hybrid cars will be propelled by a robust electric motor that receives its power from a lithium-ion battery. What is more, additional electricity is generated every time the car brakes.

 The battery is conveniently recharged at home via a regular wall socket. Electricity as a fuel is far cheaper than petrol or diesel, which results in low operating costs. The battery will take about five hours to recharge.

 The range will be about 1200 kilometres, just like in a conventional diesel car. It will be able to be driven up to 50 kilometres on pure electric power and when running on the battery, emissions from the exhaust pipe will be non-existent. If the battery is recharged using electricity from renewable sources, the net emission of CO2 will be close to zero, even in a lifecycle perspective. Volvo’s dealers will offer customers who buy a plug-in hybrid a special contract for the supply of renewable energy. This agreement has been created in cooperation with the company’s partner, Swedish electricity supplier Vattenfall.

 Efficient diesel engines as a complement

As a complement to the electric motor, one of Volvo’s fuel-efficient diesel engines will also be fitted under the bonnet. It will be optimised to run on renewable synthetic diesel and will meet the tough forthcoming exhaust emission requirements.

 The diesel engine can be run separately or in combination with the electric motor for optimal power and energy utilisation. For example, the diesel engine can support or replace electric power at high speeds or when the battery charge drops, while the electric motor can offer additional torque at low engine revs. Being able to combine these two power sources makes it possible to offer high performance and trouble-free use by the owner.

Most car trips cover short distances, to and from work. This means that the forthcoming Volvo plug-in hybrid will cover the transport requirements of most people. For longer distances, the diesel engine starts up automatically, giving the car the same properties and range as a conventional diesel car.

 According to the standardised NEDC certification driving cycle, CO2 emissions from Volvo’s plug-in hybrid will be lower than 50 grams/kilometre. Cars with emissions below 50 grams of CO2/kilometre will probably have the most favourable incentives in many European countries. In addition to tax relief, these countries will offer a discount of about 5000 euros on the purchase price, a move that is expected to set the standard for the rest of Europe too.

 ”We are focusing strongly on plug-in hybrids in order to meet the demands for low CO2 emissions and to provide sustainable road transportation. We naturally expect that the relevant authorities will offer subsidies to boost developments, speeding up the creation of a market for this type of car,” says Stephen Odell.

Today’s electricity capacity covers requirements

Plug-in hybrids consume less electricity than most people believe. The fact is that a single medium-sized wind-power station can produce renewable electricity to cover the annual consumption of 1000-2000 plug-in hybrids in normal use. Even a large number of plug-in hybrids on the roads would be able to be supplied within the framework of the electric grid’s existing capacity. If 15 percent of Europe’s cars consisted of plug-in hybrids, this would mean that total electricity requirements would only increase by between 1 and 3 percent.

 Through simple household energy savings, for instance by switching off the PC and TV overnight and using low-energy bulbs, the total energy requirement would probably be able to be kept at current levels. To put this into perspective, the energy-efficiency improvements that Volvo Cars has implemented in its factories in Ghent and Göteborg over the past four years correspond to the annual electricity consumption of 15,000 plug-in hybrid cars.

Plug-in hybrids – market potential

The purchase price of a plug-in hybrid is expected to be considerably higher than for a conventional diesel car since the batteries are still expensive. Fuel costs on electric power will be about one-third compared with driving on diesel, and this partially compensates for the higher purchase price, although not fully.

 Volvo Cars assesses that plug-in hybrids will be commercially viable for certain customer categories in 2012, gradually widening in appeal as battery price and performance continuously improve.

Skipping stages in technological development

For the time being, Volvo Cars is postponing its plans to produce what is known as a full-hybrid based on a diesel engine.

 The strategy that Volvo is adopting to start series-producing plug-in cars as early as 2012 is to exploit already existing, tried and tested platform architecture for major components such as the body and engine. Instead of waiting for an entirely new generation of car models, the company is saving time by using innovative solutions to install the battery and electric motor beside a conventional driveline. In this way, the new technology will get out to car buyers that much sooner.

Plug-in hybrids the result of industrial cooperation

In January 2007, Volvo Cars and energy supplier Vattenfall launched a joint project with the aim of testing and developing plug-in technology. A new company was founded, V2 Plug-in-Hybrid Vehicle Partnership, as a result of this cross-border initiative.

The formation of the joint company with Vattenfall creates entirely new preconditions for developing next-generation green technology in a highly efficient way. Working in partnership is something that the company regards as an absolute necessity in the drive towards a sustainable future

V² Plug-in Hybrid Vehicle Partnership will have six board members, three from each parent company. Board Chairman is Vattenfall’s Göran Lundgren. Instead of employing its own staff, the company will purchase development capacity from outside, mainly from Volvo and Vattenfall.

Charged at home

The new plug-in hybrid will be recharged primarily at home, overnight. The car will be able to be recharged from virtually any wall socket.

Three V70 demonstrator cars are being tested in 2009. The aim of these tests is to gather information about driving patterns, requirements and wishes concerning recharging possibilities.

The company’s sights are set on making the new plug-in hybrid one of the safest cars in the world.

“Right now we are focusing firmly on the car’s safety. Both battery packaging and on-board safety systems in the battery pack are under close examination. We will not compromise in any way as regards safety,” says Anders Björnberg

In January 2007, the Volvo Car Corporation and Vattenfall launched a joint project with the aim of testing and developing Plug-in technology. Now their cooperation is being taken to the next level.

Stephen Odell, President and CEO of the Volvo Car Corporation said;

We are investing in an industrial joint venture to series-produce Plug-in hybrid cars in Sweden in 2012, cars that can be powered by both electricity and diesel. This is an important business development for us and our partnership with Vattenfall allows us to take a giant step toward offering our customers cars with an even smaller environmental footprint,Vattenfall and the Volvo Car Corporation believe that series production of Plug-in hybrid cars and the development of infrastructure can generate new jobs and help Sweden maintain its position at the cutting edge of advanced pro-environmental technology. The car can be charged at home

One of the major benefits of Plug-in hybrids is that they can be charged from a regular household wall socket.

“We want to reinforce electricity’s importance in society and its key role in solving climate issues. Through this cooperation we hope to be able to speed up the introduction of electric cars. Together we are developing the next-generation technology based on Plug-in cars and various charging alternatives,” says Lars G Josefsson, President and CEO of Vattenfall.

The development of the cars is being carried out and financed jointly by the two companies. The Volvo Car Corporation will manufacture the cars and Vattenfall will develop charging systems and supply the cars with electricity. Innovative environmental technology

Electricity is very well-suited as a power source for cars. An electric motor has a high efficiency rating and consumes roughly one-fifth the energy needed to power an engine that runs on fossil fuels. The purchase price of the Plug-in hybrids will be higher than that of cars with conventional technology. Batteries are still expensive but with the car running on electricity, its fuel costs will be cut to roughly one-third compared with diesel power. Vattenfall will offer customers the opportunity to sign an agreement for renewable electricity sourced specifically from windpower or hydropower, as an alternative to the regular mix of electricity sources. Lars G Josefsson sees many benefits from chargeable Plug-in hybrids, even in cases where the electricity does not come from renewable energy sources.

“Through electric power, we avoid the emissions from each individual car. Instead of petrol or diesel, the energy is derived from a few large power sources and Vattenfall is working hard to eliminate carbon dioxide emissions from all electricity production. In Sweden, virtually all Vattenfall’s electricity production is emission-free,” explains Lars G Josefsson. The Plug-in hybrid cars will be driven by a powerful electric motor fuelled by a lithium-ion battery. The battery takes about five hours to charge from a standard wall socket, and the battery is also charged every time the car’s brakes are applied.

“Most car journeys are short trips, for instance to and from work. We will be able to offer a product that fulfils this transportation need. In order to cover longer distances as well, the car will also be equipped with one of Volvo’s fuel-efficient diesel engines,” says Stephen Odell. Demonstration cars on show this summer

In the summer of 2009, three Volvo V70 demonstration cars will be presented. The demonstration cars will be used to gather information about the wishes and demands that drivers may have on the new technology, to determine their driving habits and to establish how they want to charge their cars. Vattenfall will, among other things, test various concepts for high-speed home charging and also for charging stations in public places, where owners pay to fuel with electricity instead of petrol or diesel. The cars that are planned to go into series production in 2012 will feature somewhat different technology, but the launch of the demonstration vehicles is a step towards series-producing Plug-in hybrid cars specifically tailored to market needs.