Volvo May Sell Diesel and Plug-In Hybrids in the U.S.

As it strivesfor a higher fuel economy average, Volvo is poised to sell diesel and plug-in hybrids this side of the pond. “It’s unclear ultimately what percentage of each is going to drive the industry,” Volvo CEO Doug Speck told Automotive News, speculating on which of the two would be more popular.

The U.S. government has mandated that by 2016 corporate average fuel economy (C.A.F.E.) must average 35.5 mpg for passenger cars. If Volvo is to meet the stringent mandates, it must look to alternative forms of energy.

Speck has indicated to Automotive News that the Swedish automaker will have a plug-in hybrid vehicle ready for the European market by 2012. The U.S. sale of that vehicle shouldn’t be too far behind the European launch, feasibly coming in 2013. Volvo may integrate its plug-in hybrid system into the compact C30, or possibly a completely new electric-only model.

Plans for a diesel offering are still under wraps, but Volvo may indeed offer the XC60 diesel already available in Europe. If available, an XC60, Q5 diesel comparison could be on the horizon.

Source: Automotive News