Volvo this week announced the top line trim for their upcoming 2015 XC-90 luxury SUV, the T8.

While T8 would have previously meant a V8 engine, the new T8 has what Volvo calls Twin Engine technology. Since the company is adopting an all-four cylinder engine strategy, well something had to be added.

The T8 is a plug-in hybrid which has a 300 plus horsepower 2.0 liter supercharged and turbocharged Drive-E engine up front mated to an 8-speed automatic transmission.

At the rear is an 80 horsepower electric motor exclusively powering the rear wheels, thus no drive-shaft exists between the front and rear axles.

This combination allows the XC90 T8 to deliver up to 400 system horsepower under full accelleration which will be class leading power for the three-row SUV when it comes to market.

Also class leading will likely be fuel economy as the system can operated on electric power alone for extended periods due to its plug-in battery.

It operates in hybrid mode most of the time, and even in gasoline mode will get exceptional fuel economy with its Drive-E engine.

For those not interested in the high-end T8, a T6 model will be available with a 316 horsepower Drive-E four-cylinder engine, still offering plenty of power and fuel efficiency. For more news and test drives of hybrid or electric vehicles see our partner channel