Truckmaker Volvo says U.S., Sweden to help fund new hybrids

STOCKHOLM (Reuters) -- World number two truckmaker Volvo said today that it was joining a cooperation program to cut fossil fuel consumption partly funded by the U.S. and Swedish governments.

The projects, involving among others Volvo's U.S. subsidiary Mack Trucks, included development of hybrid technology for heavy vehicles and analyses of biofuels in diesel engines.

"For Volvo, it would involve producing powertrains based on alternative fuels suitable for heavy vehicles," the company said in a statement. "This means that we can implement a number of projects within the environmental area that would otherwise have not been possible."

It did not disclose the details of the financing agreement.