Ford building hybrid development center

Ford Motor Co. said Friday it would build a center for developing new fuel-efficient hybrid systems in Goteborg, where its subsidiary Volvo Cars is located.

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The center will produce new hybrid technology for all of Ford’s brands in Europe, and for Volvo models worldwide, the companies said.

The center will be run by Volvo, which said it would invest $1.36 billion in developing new environmental technology for its fleet over the coming years.

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Ford announced Thursday that it would fall short of its goal of producing 250,000 hybrid vehicles a year by 2010, but said the Swedish center would be part of its efforts to “to speed up the introduction of more fuel-efficient vehicles.”

Hybrid car engines combine use of traditional gasoline with alternative energy sources, such as ethanol or electric batteries.