To achieve a higher fuel economy average, Volvo is planning to sell diesel and plug-in hybrids in the U.S., according to Volvo CEO Doug Speck in an interview with Automotive News. When asked to speculate on whether the diesel or the plug-in hybrids would be more popular, he could only say that it’s unclear ultimately what percentage of each is going to drive the industry.
Volvo is seeking to comply with a mandate by the US government that by 2016, corporate average fuel economy (C.A.F.E.) must average 35.5 mpg for passenger cars. These are tough rules that Volvo would only be able to follow if it has alternative forms of energy. Speck had said that Volvo will have a plug-in hybrid vehicle ready for the European market by 2012 and for the US market by 2013. It is possible that Volvo may integrate its plug-in hybrid system into the compact C30, or opt for a completely new electric-only model.
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