A major car maker has announced that it will invest $1.36 billion to develop a new generation of vehicles that have an improved fuel economy and emit fewer harmful emissions

Volvo said that it would make the investment over the next five years, according to a report on motoring website Inside Line.

In a statement, Volvo said the initiative will "focus primarily on the development and deployment of cleaner, more efficient diesel engines, hybrids and alternative-fuel vehicles", the website said.

The company added that technology would concentrate on "the use of light, strong materials" and also "the introduction of smaller vehicles".

As part of its new initiative the company, together with its parent company Ford, said it would build a new hybrid development centre at its headquarters in Sweden.

Ford became the first carmaker to produce the first off-road hybrid, when it created the Escape.


Ÿ Adfero Ltd