Scania is following the lead of Volvo, its fellow Swedish truck maker, by developing hybrid ethanol-fueled buses with a local transport firm. The Swedish Energy Agency will pay the equivalent of $140,000 to help fund the project. Already, Scania has delivered 600 ethanol-driven city buses since 1989 in Sweden. This is a country in which ethanol-powered cars and trucks are beginning to see a significant share of the market. Sweden is also where Volvo the truck maker, Ford's Volvo car unit, and General Motors' Saab division are based. All of these firms are aggressively investing in alternative-fuel vehicles. The Swedish government is also taking the lead in lobbying the European Union for more stringent CO2 emission cap mandates for cars.
Why Sweden?