Volvo Car Corp. says it plans to invest $1.36 billion over the next five years to develop more fuel-efficient vehicles.

“The aim is to reduce the total fuel economy and tailpipe emissions of the global Volvo Car fleet,” the Ford Motor Co. subsidiary says in a statement.

“The investment initiative will focus primarily on the development and deployment of cleaner, more efficient diesel engines, hybrids and alternative-fuel vehicles, (and) the use of light, strong materials,” Volvo says.

It also will lead to the introduction of smaller vehicles, Volvo says.

The auto maker says it plans to build a new hybrid technology development center in Gothenburg.

The center initially would be staffed by 20 engineers, and would be responsible for developing hybrid systems for Volvo and other Ford subsidiaries.

Volvo does not provide a timeframe for construction of the proposed center.