Magnus Jonsson, Volvo's director of research and development, told Automotive News that the Swedish firm was working on the new powertrain combination largely to replace its existing V-8s.
"I don't think there is a bright future for the V-8, especially for Volvo," he said. "It's the best engine we have, but if the environment is changing...you can look for alternatives."
Volvo's hybrid design itself seems to be an alternative to most hybrid vehicles. Though it can reportedly run on electric power alone, the front wheels would be powered by a five-cylinder turbo-diesel, while the electric motors would turn the rear axle.
Look for the new hybrid system to be first installed in Volvo's S80 sedan and XC90 SUV, with other applications - and perhaps a plug-in hybrid variant - to arrive shortly afterward.
Source: Automotive News