Volvo to Stop Making Diesel Engines Next Year

Volvo has officially announced that it will cease the production of diesel engines next year.

In recent times, the European market has witnessed a decrease in the diesel market share held by the Swedish automaker, and the company has pledged to exclusively sell electric vehicles by the year 2030.

Volvo has affirmed its plans to discontinue the production of all diesel-powered vehicles by early 2024. This decision follows Volvo's previous commitment to eliminating combustion engine research and development funding. The company is dedicated to exclusively offering electric cars by 2030 and aims to achieve complete carbon neutrality as a company by 2040.

Automakers are steadily advancing their transition towards electrifying their vehicle lineups, and Volvo has recently declared its intention to discontinue production of all remaining diesel models by early next year.

Simultaneously, Volvo is further emphasizing its commitment to electrification. The company had already taken the significant step last year of discontinuing the development of new combustion engines and allocating no further research and development funds to them. In November of the same year, Volvo also divested its stake in Aurobay, a joint venture company that held the carmaker's remaining assets related to combustion engines.

Volvo hasn't offered diesel-powered vehicles in the United States for many years. Nevertheless, even on a global scale, the recent announcement isn't surprising, considering the dwindling market share of Volvo's diesel cars. According to Reuters, as recently as 2019, a majority of the cars sold by Volvo in Europe were diesel, but by 2022, they accounted for just 8.9 percent of the manufacturer's sales.

Jim Rowan, the CEO of Volvo Cars, stated, "Electric powertrains are our future, and superior to combustion engines. We're fully dedicated to developing a comprehensive range of premium, fully electric vehicles that meet all the expectations of our Volvo customers and play a significant role in our response to climate change."

This decision aligns with Volvo's strategic plan to achieve a 100 percent electric vehicle sales target by 2030, as well as its broader objective of becoming a carbon-neutral company by 2040. As early as 2019, Volvo initiated the process of electrifying all its new models, encompassing hybrid, plug-in hybrid, and battery-electric vehicles like the forthcoming EX30 and EX90 SUVs.