Volvo and Vattenfall have found fertile ground for further development, agreeing to a joint venture partnership last week. The partnership would continue the 2007 pact with the aim of developing Volvo plug-ins for the global market by the end of 2012. The centerpiece of the Volvo-Vattenfall partnership will be a trio of Volvo V70 demonstration cars rolling along Swedish streets this summer.

Volvo and Vattenfall have worked closely to develop a Volvo V70 that demonstrates the current viability of plug-in vehicles. The V70 demonstration vehicle is designed with a front-wheel diesel engine and rear-wheel electric motor to decrease fuel consumption. Vattenfall consulted during development of the Volvo V70 prototype to integrate plug-in capabilities into the hybrid design.

The 11.3 kWh lithium-ion battery pack can be recharged within five hours using a standard household outlet. Volvo and Vattenfall will gather mileage, durability and overall performance information from these demonstrators before developing units for the open market.

Vattenfall offers several assets within this partnership that will help Volvo catch up in the hybrid vehicle market. The Swedish utility company is developing the charging systems for the V70 plug-in hybrid and other cars developed as part of this partnership. Vattenfall customers will be able to pay slightly higher electric rates if they choose power from hydroelectric sources and wind farms rather than traditional electrical sources. The utility company is currently researching fast-charge technology for Swedish homes that could be unveiled ahead of the 2012 deadline. Swedish cities may be filled with public charging stations in the near future courtesy of Vattenfall, which would make the V70 rollout easier for Volvo.

As Vattenfall lays the groundwork for plug-in technology, Volvo will be able to leverage its considerable resources to produce the V70. Volvo is co-financing all steps of the development process and supplying its vehicles for testing. The substantial production, research and marketing resources of Volvo Car Corporation may make the 2012 rollout date seem overly cautious in the end. The automaker’s high-end reputation lends it credibility among drivers and auto industry experts who may question the Volvo/Vattenfall partnership.

Reprinted with permission from HybridMile