This week, Volvo Car produced its latest diesel-powered car. Thus, the company ends one era and strives to move to the next – by 2030, it plans to produce only electric cars.
The last Volvo car with a diesel engine was the XC90 sports SUV. It rolled off the assembly line at the Torslanda plant in Sweden on Tuesday evening. Volvo is gradually eschewing diesel technology at a time when global demand for electric vehicles is cooling. At the same time, the company will still produce cars with gasoline engines.
“We are quite confident that we have a very good proposition for customers even without the diesel,” Erik Severinson, Volvo Car’s chief executive in charge of new cars and operational strategy, said in an interview.
Other automakers have not been strategic about when they will phase out combustion engines, and some have backed away from electric vehicle goals. Last month, Mercedes-Benz adjusted its forecast for the transition to all-electric cars. At the end of last year, Audi announced that it was reducing the production of electric cars.
In 2017, Volvo Car became the first major automaker to commit to phasing out cars that run exclusively on fossil fuels. Since then, the company has introduced several hybrid and fully electric models.
In the brand’s core market of Europe, diesels peaked 9 years ago, accounting for around half of new sales. Last year, this figure fell to 14%. Demand for diesel cars fell after Volkswagen admitted in 2015 that it had fitted its diesel engines with software to cheat emissions tests.
Source: Bloomberg
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