As fuel prices continue to rise, fuel economy in our cars becomes a bigger issue on a daily basis. Volvo announced at the Chicago Auto Show that they are working towards a line-up of automobiles that utilize nothing but four cylinder engines.

Within five years, U.S. president and chief executive officer of Volvo John Maloney says that every new Volvo will come outfitted with a four cylinder engine as “it just makes sense.” Thanks to turbochargers and high pressure fuel injection systems, among other new technologies, smaller displacement engines are constantly becoming more and more powerful leaving no use for larger motors.

One good example of this cylinder downsize strategy at work is Ford’s Ecoboost engines which have been quite successful as they offer equivalent power to competitors motors with less cylinders.

The move to four cylinders will also streamline the companies manufacturing and ordering operations, saving the company money in the long run.

Volvo has long been recognized for its boxiness and its Swedish sensibilities but it wasn’t always so. For February 2012, Volvo is celebrating the 30th birthday of the original 760 GLE sedan, the car that saved the Volvo Car Corporation.

During 1975, automakers across the world were badly beaten by the effects of the oil crisis. Struggling to build quality cars in a difficult economy and an uncertain future, Volvo needed to create a vehicle that would be successful despite the volatility of the times. With limited resources, Volvo did its best to thoroughly analyze trends that shift the market. Finally, Volvo determined that what it needed to create is a vehicle that highlights reliability, fuel efficiency, longevity, serviceability, low noise levels, design and performance. Project “P31″ was born.

For cost reasons, the foundation was built upon technical content carried over from the 240 series predecessor with minor modifications. However, the enhanced recipe was brilliant. The new rear-wheel drive Volvo would get a wheelbase stretched another 10 cm for stability while its overhangs were shortened for a shorter overall length than the 240. In the weight department, the new Volvo was effectively reduced 100 kg.

As for the design, Volvo needed to create an angular, straight, and flat body panel design to minimize production costs. While many sketches were proposed, Volvo head of design Jan Wilsgaard finally introduced a design with striking identity and market appeal. Known as the cutback, the Volvo sedan featured a drawn out rear end that ended abruptly, providing a spacious and comfortable feeling from inside the cabin, and a characteristic profile from the exterior. Amid all the slippery soap bar shaped vehicles that other manufacturers offered, the Volvo’s radical box design was sure to stick out and attract a following.

Close to completion, Volvo renamed the prototype as “1155″, or 5 minutes to midnight, to suggest the final phases of development. The 1155 was sent off to 3,200,000 km of field testing and shakedowns in 3 continents and the most extreme climates, where it was challenged in every thinkable manner.

The completed Volvo 760 finally made its public reveal on February 1982. Featuring an automatic transmission, air conditioning, a sunroof, power steering, and 3 engine choices including a four-cylinder turbo, a V6 bored out to 2.8 liters, and a Volkswagen-built turbodiesel, critics were surprised at how powerful, comfortable, and pleasant to drive the 760 turned out to be. At the time, the turbodiesel 760 was the quickest accelerating diesel car in the world.

Sales took off instantly, both in Sweden and abroad. Its success allowed one of the longest product-lives of any vehicle, when the 1998 Volvo V90 became the last Volvo car to carry its technical and architectural roots back to the 760. So why are we looking back to a car that Volvo introduced 30 years ago? Because it still stands as a pillar of what Volvo represents today.

GALLERY: Volvo 760 GLE

For decades, the Volvo brand was the epitome of safety. Many perceived the Swedish automaker’s models to be bland and boring, but one thing was for sure: they were built like tanks.

Nowadays though, Volvo has developed a reputation for having sportier vehicles while maintaining the safety standards they established throughout the years. And now their 2012 S60 has joined the ranks of Chevrolet‘s Camaro in becoming the second vehicle ever to score perfect ratings in every category of NHTSA crash testing, since they changed the standards in 2011.

The three tests that the S60 aced with no issues were a 35-mph frontal collision, a 38.5-mph side impact and a 20-mph simulation of a side crash into a pole. All three sound incredibly uncomfortable and hopefully no one ever has to put their vehicle to the test; but certainly it’s nice to know if you own an S60 that you’re more than protected if the circumstances does arise.

Check out a trio of crash videos after the break, because we always love watching cars get demolished on purpose.

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Despite reducing the number of models available to US consumers in recent years, notably the compact S40 sedan and V50 Wagon, Volvo has now decided to reverse the trend somewhat by adding a T5 all-wheel drive version to its S60 line.

The new model will slot in between the front-drive S60 T5 (which currently stickers for $32,175) and the S60 T6 AWD ($39,325). Apart from utilizing Volvo’s Haldex all-wheel drive system, the T5 AWD model is mechanically almost identical to its front-drive counterpart, meaning that it’ll be powered by the same 250 horsepower, 2.5-liter blown five-cylinder motor.

And although its announcement at the Detroit Auto Show wasn’t huge news, the T5 AWD should at least give Volvo a chance at competing against AWD models of Audi and BMW’s volume sellers, the A4 Quattro and 328i xDrive.

[Source: Car & Driver]

A major step towards self-driving cars, Volvo has announced its first successful test of what it calls a “road train”. As a part of the SARTRE (Safe Road Trains for the Environment) project, a test fleet of cars fitted with special equipment becomes a caravan of sorts, bunching up behind a lead vehicle and acting as a single “attached” unit – much like a train on tracks.

The driver, by giving over control of their vehicle to the train, can then use the time spent commuting to talk on the phone or eat. Being a Volvo initiative, this is more than just a convenience feature and something Volvo believes will significantly improve the safety on our roads by reducing the human potential for error. In addition, by regulating the driving and helping reduce or avoid the bunch-ups of stop-and-go traffic, it’s also a more fuel efficient method of travel. In fact, Volvo expects road trains to improve efficiency by up to 20 percent.

Volvo’s successful test included three cars following a lead truck at speeds of up to 90 km/h (56 mph), with 6 meters (roughly 20 feet) of space between each car.

“The aim is for the entire road train to be completed in autumn 2012. By then we will have four vehicles after one lead vehicle driving at 90 km/h,” says Erik Coelingh, technical project manager at the Volvo Car Corporation.

Designed to work on normal highways with other traffic, the SARTRE project is also studying what infrastructure changes would need to take place in order to bring road trains to European highways, not to mention issues of local laws and the tricky liability issue.

GALLERY: Volvo Road Train Test

Swedish automaker Volvo is looking to shack up with a new mate in the hopes of making a fresh set of small cars. Their current compact, the C30 (above), is based on technology from former parent company Ford.

However, Ford dumped Volvo almost two years ago, passing them off to Chinese Geely Holding Group for $1.8 billion, a fraction of what they originally paid. Now the company says the are welcoming partnerships with other companies to fill the void their former American partner left behind.

Volvo CEO Stefan Jacoby told the Financial Times that the company is open to new partners who will be able to share in developing further compact models alongside Volvo in an effort to drive down production costs.

There isn’t an official decision yet about pairing up with any specific company, though it makes sense that Volvo would be looking for a new dance partner given that their current C30 line is nearing the time when a model typically gets a refresh.

The collaborative strategy is becoming increasingly common among automakers as profit margins start to wear thin. Last year Volvo agreed to work with German company Siemens to produce an electric vehicle.

Aside from business to business collaboration, Jacoby is taking Volvo in a similar direction as the last company he managed: Volkswagen. In an effort to cut costs, he’s taken the company from offering 10 engines to only two. He’s also implementing something similar to VW’s “modular box” approach to building cars, where multiple vehicles of different sizes are made in the same facility.

In the spirit of consolidation, Volvo is also expected to launch the compact V40 at the 2012 Geneva Motor Show this March. That car will replace the current S40 and V50 models.

[Source: Financial Times]

The Volvo XC60 is getting a makeover for 2012, but not in the looks department. Aesthetically it will remain the same, but the power plant in the Volvo is getting quite an upgrade.

There are many ways that Volvo is trying to improve fuel economy with this new hybrid system. The XC60 will be run by a four cylinder 280hp turbocharged gasoline engine as well as a 70hp all electric engine which combines to give the XC60 a total of 350hp. There are three power delivery options that you can choose from while driving the XC60; The all electric or ‘pure’ mode that operates the vehicle on just the electric motor and has range of 35 miles, the standard hybrid mode which is a mix of both the electric and gasoline engines and according to the U.S. certification standards gets 50MPG, and the ‘power’ mode which uses both engines to deliver the maximum amount of power and and torque for the vehicle.

The new AWD system on the XC60 will split the gasoline power to the front axle and the electric power to the rear for use in fast accelleration scenarios and getting started in thick road conditions such as snow or mud. The hybrid system will be mated with an eighth-speed automatic transmission which will also help to improve low end torque and fuel consumption.

Volvo claims that on a standard 110V power outlet the cars lithium-ion battery pack will fully charge in 7.5 hours.

In terms of technology, the Volvo is not being left behind. There is an app which has been created so that the driver can check the amount of charge in the car’s batteries. The app will also make it possible to change the climate control settings and see what the status of an ongoing charge is.

The XC60 plug in hybrid has a lot of tricks up its sleeve to save consumers some money on fuel, but we will have to wait and see how this intricately designed system is priced.

Check out the styling on the XC60 in the video after the break.

GALLERY: Volvo XC60 Plug-In Hybrid

GALLERY: Volvo XC60 Plug-In Hybrid

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We’ve already been given the scoop on Volvo‘s upcoming V60 Plug-in Hybrid, however, given the nature of that vehicle, it was hardly surprising that Europe was most definitely its target audience.

Considering that North American (and Chinese) buyers clearly have a strong preference for gasoline engined vehicles over diesels, as well as SUVs over wagons, Volvo has now announced that it will build an XC60 Plug-in Hybrid with a petrol engine for these markets, which will make its world debut at the 2012 North American International Auto Show in Detroit .

The news is particularly welcomed by US dealers, providing a much needed boost in the shape of a green “halo” vehicle, at a time when much of Volvo’s vehicle lineup is essentially marking time and (apart from volume sellers like the XC60 and S60) significantly new models are still a ways off.

The XC60 gas/electric Plug-in Hybrid will sport an electric motor producing 70 hp, along with a four-cylinder gasoline engine, resulting in a total power output of 350 hp. According to Volvo, this version will be able to travel a distance of up to 35 miles on electricity alone as well as delivering some 50 miles per gallon in Hybrid mode.

It also uses an innovative electric AWD system, with the gasoline engine powering the front wheels, while electric power can be fed to the rear wheels when accelerating or in low grip situations.

“A plug-in hybrid is the ideal eco-car for today’s conditions,”  declared Volvo President and CEO Stefan Jacoby. “It gives a large proportion of motorists sufficient range on electricity for their daily commute. More than half of U.S. drivers cover less than 30 miles a day. With its three driving modes, the XC60 Plug-in Hybrid Concept also offers the owner a conventional model’s interior space, safety, performance and long range. It gives the driver uncompromising flexibility to cover every type of motoring need.”

Although deliveries of the European diesel/electric V60 Plug-In Hybrid are scheduled to begin late this year, so far there’s been no word on US availability of the XC60 Plug-In Hybrid, though it’s likely cars will be on dealer lots sometime during 2013.

GALLERY: Volvo XC60 Plug-in Hybrid

See AutoGuide’s complete 2012 Detroit Auto Show Preview Here

Volvo new U.S. CEO, John Maloney, is predicting nothing but good things for the company, and has released some details on how he plans to grow the Swedish brand.

Starting with new vehicles, Volvo has announced that in 2014 we can expect a flexible mid to large size platform that will be used to replace more than one vehicle, starting with the XC90 crossover. The following year, in 2015, Volvo says that we will see an all new S80 sedan.

A brand new four cylinder naturally aspirated or turbocharged engine will be unveiled in 2014 along with the new vehicle lineup that will replace the existing six-cylinder and V8 Volvo motors. Plug in hybrids are also expected from the Swedish automaker, but there have been no official announcements as to when we may see those in the U.S. market.

To prepare for the upcoming year, Volvo has increased production on the XC60 crossover and the S60 sedan at Swedish plants to ensure there is no supply shortages, as there were in 2011, which held back some vehicles from getting to dealer showrooms when they were in demand.

Maloney predicts that Volvo’s total sales for this year will have a 25 percent increase from last year, a surprising number when you consider Volvo has no new models this year, only a facelift for the XC90.

[Source: Auto News]

Just last week Volvo first confirmed the existence of the V40 (previously believed to be called the V30) and now we have the very first spy photos of the compact Swedish machine.

Set to replace both the S40 and V50 wagon, the V40 is being built as a rival to the Audi A3 Sportback and BMW 1 Series. While much of the car is covered in camo, when the production model does arrive this March at the Geneva Motor Show, look for design cues taken from the XC60 crossover with a shape similar to that of a shrunken V60. After its debut, Volvo is expected to follow-up with an XC40 crossover version, while an S40 is rumored for the Chinese market.

What isn’t yet clear is if Volvo will continue to produce the C30 hatchback or if the V40 is also designed to replace that car as well.

As for engines, expect a 1.6-liter 4-cylinder gasoline version, as well as either a 1.6-liter or 2.0-liter diesel 4-cylinder.

GALLERY: 2013 Volvo V40

Details and pricing for Volvo‘s 2012 C70 Inscription package have finally been announced with pricing set at $3,900 for the package and will be limited to just 500 units in North America, 2,000 in the world.

The C70 Inscription adds subtle modifications to Volvo’s C70 hardtop convertible, adding horsepower, torque, plus interior and exterior accessories. Performance tuning to the Engine Control Module is exclusive to North America and is provided by Polestar, a Swedish racing and performance products company partnered with Volvo.

The result is 23-hp more and 37 lb-ft torque more, bringing the grand total to 250-hp and 273 lb-ft of torque. In addition to the performance, US C70 Inscription owners will also get a set of 18-inch Midir wheels in a polished / gloss back finish, leather-covered dash with contrasting stitching, active dual Xenon headlights, LED daytime running lights with chrome trim, a new front grille in a glossy black finish, a rear spoiler and aluminum sport pedals in the interior.

The Volvo C70 Inscription will only be available in two colors: Ice White and Black Sapphire Metallic. It will go on sale during the first quarter of next year.

GALLERY: Volvo C70 Inscription

Volvo is angling in on BMW and Audi territory with a new 5-door hatchback meant to target the same market as the 1-series and A3 Sportback.

Stephan Jacoby, Volvo’s CEO, showed the first teaser photos of the car originally rumored to be called the V30. That speculation was corrected today, in fact the car will run as the V40, the same as their mid-90′s station wagon.

Details about a U.S. release  and pricing haven’t been discussed yet, but when the car comes to market it will feature a stretched version of the C30 platform, measuring about 175 inches. Initially, the V40 will only come as a hatchback though Jacoby said a 4-door version is still possible.

“It’s basically a new segment for us”, said Volvo spokesman Per-Åke Fröberg in an interview with Sweden’s Dagens Industri.

According to De Telegraaf, a Dutch newspaper, the car will come with different engine options. First, a 1.6-liter four cylinder with the option for 120, 150 or 180 horsepower. Second, a diesel version featuring either a 1.6-liter or 2.0-liter under the hood.

So far it isn’t clear how much the car will cost, but one thing is certain: the V40′s entry marks two other models being discontinued in 2012: the S40 and the V50.