Press Releases

Volvo Cars and Ford Motor Company commit to environmental technology development in Sweden


30 Jun 2006, IDnr. 843


New development center in Gothenburg will lead the application of hybrid systems for Ford Motor Company's European customers. Volvo Cars to invest 10 billion SEK to improve fuel economy and tailpipe emissions of its global fleet.


In a twin announcement today, Ford Motor Company and Volvo Cars unveiled environmental engineering plans in Gothenburg, Sweden.


First, led by Volvo Cars, Ford Motor Company will establish a hybrid development center in Gothenburg for Ford's Premier Automotive Group and Ford of Europe business units. This center will have overall responsibility for the application of hybrid systems into Volvo Cars vehicles globally as well as for ensuring Ford of Europe and brands from Ford's Premier Automotive Group are able to apply core hybrid systems into their own product plans. The center will be staffed initially by a mix of 20 leading engineers from both Volvo Cars and other brands from the Ford Motor Company group.


Part of a global initiative by Ford Motor Company to speed the introduction of more fuel-efficient vehicles, the new hybrid development center will build on the experience and expertise that Volvo Cars has built up over many years in developing advanced environmental technology systems, including some of the early hybrid systems, that eventually made their way into the world's first hybrid SUV, the Ford Escape. "We are very pleased that Ford Motor Company has decided to establish a development-center for hybrid technology in Gothenburg. This shows a strong belief in Volvo Cars and our ability to deliver results in future advanced technologies and underline the fact that Sweden has all the pre-requisites for research and development excellence" says Fredrik Arp, President and CEO of Volvo Car Corporation.


The center's location will ensure that hybrid technology development at Ford Motor Company takes into account different market trends and customer preferences in regions around the world. While the new center will be located in Gothenburg, each brand within Ford European operations will be responsible for applying new technologies to their own product portfolios.


The team at the new hybrid center will also work closely with Ford's hybrid development team in Detroit, Michigan, to ensure optimum global alignment and economies of scale.


“The hybrid cars of tomorrow will be more sophisticated and much further developed compared with what we see on the road today. And it is likely that we will find high-performance hybrids running on diesels and renewable fuels,” says Arp.


Volvo Car Corporation invests 10 billion SEK in environmental technologies

In a linked announcement, Volvo Cars announced the investment of 10 billion SEK in environmental research and development. The aim is to reduce the total fuel economy and tailpipe emissions of the global Volvo Cars fleet.


The investment initiative will focus primarily on the development and deployment of cleaner, more efficient diesel engines, hybrids and alternative fuel vehicles, the use of light, strong materials like magnesium, aluminium and lighter high-strength steel, and the introduction of smaller vehicles, while continuing to meet customer expectations for safety in Volvo Cars.


“Volvo Cars commitment to the environment is long-standing and well-recognised – it is part of what people know us for. With this significant investment we are ensuring that our tradition continues in the years to come and that Volvo customers' green aspirations will be met,” added Fredrik Arp.


The Volvo Car Corporation, with its head office in Gothenburg, Sweden, has been a subsidiary of Ford Motor Company since 1999. Volvo has approximately 27,000 employees around the world.

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