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California adapts ZEV mandate with PHEVs for smaller automakers

California is the nation's largest market for zero-emissions vehicles with over 100,000 of them estimated to be on the roads there. The state's goal is to keep that number growing every year. To that end, the California Air Resources Board is now tweaking its rules in a way that might not boost ZEVs but could mean more plug-in hybrids for the Golden State. Jaguar Land Rover, Mazda, Mitsubishi, Subaru, and Volvo asked for an exemption to the state's zero-emissions vehicle mandate last year due to their relatively small development budgets compared to larger automakers. CARB denied their request but did craft a compromise, according to Automotive News. Rather than being required to offer a ZEV in the state, companies with an annual global revenue of less than $40 billion, like those in this group, may instead sell plug-in hybrids to earn ZEV credits. The companies aren't completely off the hook, though. If these plug-in hybrids don't earn enough credits, the corporations must buy them on the market to make up the difference. Automakers with popular electric models like Nissan and Tesla have made a big business through this trading system by selling their surplus to rivals. Tesla alone pocketed $51 million in the first quarter from this part of its business, according to Automotive News. The changes to the regulations also aren't set in stone, yet. CARB is meeting in 2016 and could adjust things further at that time. Related Video: News Source: Automotive News - sub. req. via Hybrid CarsImage Credit: Justin Sullivan / Getty Images Government/Legal Green Jaguar Land Rover Mazda Mitsubishi Subaru Volvo Emissions Electric Hybrid California zev credits zero emissions vehicle

Watch Polestar talk about the development of its super S60

Polestar is getting ready to deliver its first production car, the Volvo S60 Polestar. Letting the S60 stretch its legs, Polestar Racing driver Robert Dahlgren took the blue sedan from Barcelona, Spain to Jokkmokk, Sweden - stopping for wet-weather testing in Germany along the way.
Dahlgren narrates the journey of the "pilot project" that has 350 horsepower and around 368 pound-feet of torque, and will perhaps be the first in an era of hardcore Volvo production cars. It will go on sale in Australia this Summer, with other markets "under investigation." While we non-Aussies wait with fingers crossed, there's a video below to enjoy.

Future Polestar Volvo models could feature diesel, EV tech

Volvo's Polestar sub-brand has made the transition nicely from being the company's racing arm to building some seriously cool, Swedish cars. Now that it has a few models under its belt, it plans to grow larger and greener. The next-generation of Polestar-tuned vehicles are rumored to include high-performance hybrid and diesel powertrains.
While it still doesn't have the brand recognition of BMW M or Mercedes-Benz AMG, Polestar is on the growth path. It's representatives recently told Autoblog that its latest, tuned S60 and V60 models "mark the start of an extended production car model range." In addition to that expansion, Volvo has given its performance division a greater responsibility for engineering future vehicles, according to Autocar. It even helped develop the new Drive-E engine, which we quite liked when we took it for a spin in an S60.
Polestar's boss hinted at a hybrid model to Autocar, a move that seems obvious once you think about it. The Drive-E engine was designed from the beginning to accept hybrid layouts. The division's plan is to put and electric motor on the rear axle to both increase torque off the line and provide all-wheel drive. As Drive-E also offers diesel variants, that is in the cards as well for the future, but the company didn't go into much detail. Polestar appears to be the upcoming shooting star of the performance car world.