Volvo is working on a new hybrid called the ReCharge. Check out this link for the technical specs on it.
I think this is a great idea and it could get up to 160 mpg if they do this, the problem is, they won’t be ready for another 5 years. Most analysts on the sector give 18 months for automakers to switch to more fuel efficient cars. Volvo will be out of the loop in 5 years and late to the game. I would like to see them try to develop this car and launch it for the 2010 model year. The iron is hot, demand is high, I know I’d buy one; I think Volvo should reconsider their decision and launch this car as soon as possible.