DOE and Volvo Extend Fuel-Efficient Truck Partnership for 3 Years
June 30, 2008
DOE and the Volvo Group announced on June 30 that they will work together for an additional 3 years to develop fuel-efficient trucks. DOE and Volvo, the parent company of Mack Trucks, Inc., originally signed an agreement in June 2007 with the goal of demonstrating heavy-duty engine systems with at least 10% higher fuel efficiency than conventional diesel engines. The new agreement between DOE and Volvo focuses on testing and analyzing the effects of various biofuels on diesel engine performance, developing hybrid vehicle technology for heavy-duty engines, and creating an engine and advanced transmission system that are designed to operate within a narrow range, making them ideally suited for use in a hybrid vehicle.
Under the new agreement, DOE will invest $9 million over the next 3 years, matched by $9 million from the Swedish government. When added to the original commitment of $18 million from Volvo Group and $12 million commitment from the United States, up to $48 million will be invested in this partnership. Both the new and the earlier cooperative efforts support an ongoing agreement between DOE and the Swedish government. See the DOE press release and an overview of the June 2007 Implementing Agreement on the International page of DOE's Office of Energy Efficiency and Renewable Energy Web site.