Volvo and Siemens Team Up on Electric Drive Technology

Just the Facts:

• Volvo and Siemens announced that they will team up to speed the technical development of electric cars.
• The partnership will focus on the development of the Volvo C30 electric car.
• The first Volvo C30s with Siemens electric motors will be on the test track by the end of the year.

GOTHENBURG, Sweden — Volvo and Siemens announced that they will team up to accelerate the technical development of electric cars.

The partnership is similar to one announced in April between Daimler and Bosch to develop electric motors for electric cars, including those made by Mercedes-Benz and Smart.

The partnership will focus on the development of the Volvo C30 electric car. The first Volvo C30s with Siemens electric motors will be on the test track by the end of the year.

Volvo said by late 2012 it will deliver a "test series of up to 200 vehicles to Siemens, which will then be tested and validated under real-life conditions as part of a Siemens internal test fleet."

"We are moving ahead quickly in this area," said Stefan Jacoby, president and CEO of Volvo Cars in a statement. "Our aim is to be first with the latest technology within electrification. The partnership reinforces our aim to pursue the fast-growing market for electric cars."

Volvo will start small-scale production of the Volvo C30 Electric this year, followed by the Volvo V60 plug-in hybrid in 2012.

Jacoby said the company is moving from "prototypes and small volumes toward series production, starting with the plug-in hybrid."

Inside Line says: Deals like this improve the likelihood of a Volvo EV ending up in your driveway.