Volvo is now introducing the fourth-generation hybrid solution on a broad front in buses, trucks and
construction equipment. Volvo has been testing various types of hybrid solutions since the 1980s and Volvo Group unveiled the first commercially viable hybrid solution for heavy vehicles in March 2006. 

Volvo's solution is based on a concept known as I-SAM (Integrated Starter, Alternator Motor). This solution entails that an electric motor and a diesel engine work in parallel, whereby each of them can be used in the areas where they are most effective. This increases the capacity compared with series hybrids, while reducing fuel consumption and improving driving characteristics-imultaneously. The favourable commercial prospects for the Volvo Group's hybrid technology derive from the fact that it is based on a platform solution containing a large number of standard components. The solutions that have existed in the market to date, and that the Volvo Group itself has been offering, have been based on a large proportion of special components. This has impeded volume manufacturing and led to the vehicles becoming much more expensive than the equivalent standard vehicles. Another advantage generated from an adaptable platform solution, such as the one that the Volvo Group has access to, is that it can be used for a variety of different products and applications, which further increases the volumes and reduces production costs.

Within short, Volvo Buses is launching its new hybrid bus, the Volvo 7700 Hybrid, in Europe. Production of the new bus, which is based on the Volvo Group's hybrid technology, is scheduled to start in 2009. This hybrid technology provides fuel savings of up to 30%. Volvo Buses will also be carrying out field trials with six hybrid-powered double-decker buses in London, an investment that will be of great importance for the future markets for hybrid buses in London.