To date, aside from some diesel and flex-fuel engines in Europe, Volvo hasn't done much in the way of alternative drive vehicles. The Ford owned Swedish brand showed an extended range electric concept called the Recharge
last year based on the C30. However, hybrids haven't been part of Volvo's program quite yet. That all appears set to change in the next few years as CAFE and European CO2
standards will be tightening. A micro hybrid, which is a fancy way of saying automatic start-stop system is set to debut in 2011. Actually, the system is also expected to incorporate a brake energy regeneration system like the one used by BMW. This system drives the alternator during deceleration to charge the 12V battery, reducing the parasitic load on the engine. A year later, a strong hybrid system paired with Volvo's five cylinder diesel should debut. At some point, a production car based on the ReCharge is expected to debut although there is no indication of when that might happen.
[Source: Channel 4