It's my understanding that they actually built an 850 hybrid,
and then ditched the project. They are supposedly working on
several things, including an electric S60, but I wouldn't hold
my breath - buy the Camry hybrid next year.

They simply MUST have such a vehicle under development.  Volvo makes fine
diesel engines for their European markets; a diesel hybrid will offer
wonderful economy.  Honda with the Accord hybrid showed the path to
superiour performance with no cost in terms of fuel economy compaired to a
gas engine, I believe Lexus is going the same way with the yet to be
introduced LS460, so perhaps a gas engine hybrid would enable the 5 cyl
engine to approach the power of the V8 while delivering good mileage.

**HINT HINT Volvo/Ford**:

The S40/C30/V50 would seem to be the ideal place to put a performance
enhancing hybrid package