Volvo, governments extend hybrid research grant

WASHINGTON — Volvo’s commercial vehicle group has announced the U.S. Department of Energy and the government of Sweden have extended a cooperative agreement with the truckmaker on the development of alternative drivelines.

The extended agreement builds on a partnership from 2007. It will provide a three-year, $18 million grant to Volvo for the design and production of hybrid technology and drivelines for alternative fuels, the company said.

"The climate issue and increasing fuel prices make energy use and energy efficiency some of the most important societal issues of our time," said Volvo Group CEO Leif Johansson.

"The transportation industry has a special responsibility and this research and development co-operation with the U.S. government is crucial in our efforts to develop drivetrains and technology," he added.