Volvo will stop developing diesel engines and focus more on electric vehicles.
Volvo Chief Executive Officer Hakan Samuelsson said that the current generation of diesel engines will be the last and that they will instead focus on electric vehicles. Samuelsson also gave credit to Tesla for launching demand for electric vehicles, which is parallel to their new decision.
“From today’s perspective, we will not develop any more new generation diesel engines,” Samuelsson told German’s Frankfurter Allgemeine Zeitung in an interview.
“We have just launched a brand new generation of petrol and diesel engines, highlighting our commitment to this technology. As a result, a decision on the development of a new generation of diesel engines is not required. We have to recognise that Tesla has managed to offer such a car for which people are lining up. In this area, there should also be space for us, with high quality and attractive design.”
Diesel cars account for over 50 percent of all new registrations in Europe, making the region by far the world’s biggest diesel market. Volvo, owned by China’s Geely, sells 90 percent of its XC 90 offroaders in Europe with diesel engines.
After Volkswagen AG’s diesel cheating scandal, many automaker brands were working on new ways to reduce, even end development for diesel engines.