We investigate the interaction of strongly correlated electrons with phonon
s in the frame of the Hubbard-Holstein model. The electron-phonon interacti
on is considered to be strong and is an important parameter of the model be
sides the Coulomb repulsion of electrons and band filling. This interaction
with the nondispersive optical phonons has been transformed to the problem
of mobile polarons by using the canonical transformation of Lang and Firso
v. A new diagram technique is used in order to handle the strong Coulomb re
pulsion of the electrons, which leads to a closed set of integral equations
for the irreducible on-site many-particle Green's functions. The coupling
to the phonons leads to an essential renormalization of the one- and two-pa
rticle irreducible Green's functions. It also influences the parameters whi
ch control the metal-insulator or superconducting phase transition. In addi
tion we find a collective mode of phonon clouds which surround the polarons
. The physics of the emission and absorption of this mode by the polarons h
as been investigated. [S0163-1829(99)12801-7].