Gothenburg, Sweden – Volvo Cars (VOLCARb.ST) announced on Tuesday its decision to discontinue the production of remaining diesel models, with the last diesel-powered Volvo car slated to roll off the assembly line in early 2024. This move aligns with Volvo’s ambitious goal of becoming a fully electric car manufacturer in the near future.
In a statement, the Swedish automaker asserted, “In a few months from now, the last diesel-powered Volvo car will have been built, making Volvo Cars one of the first legacy car makers to take this step.” The company’s commitment to electrification reflects a broader industry shift towards sustainable and environmentally friendly transportation solutions.
Volvo, majority-owned by China’s Geely (0175.HK), has set a clear target of transitioning to a fully electric lineup by the year 2030. This strategic decision aligns with the global trend toward reducing carbon emissions and embracing electric mobility.
The move away from diesel is a significant transformation for Volvo, as just a few years ago, a majority of the vehicles sold in Europe by the automaker were diesel-powered. As recently as 2019, However, the landscape has evolved rapidly, with diesel cars representing only 8.9% of Volvo’s total sales in 2022.
In August 2023, electric and hybrid models accounted for a substantial 33% of Volvo’s sales. The remaining 67% of sales, which consisted of combustion-engine models, did not specify the breakdown between diesel and gasoline-powered vehicles.
The decline in diesel’s popularity can be attributed to several factors, including the fallout from the Volkswagen emission-cheating scandal, which tarnished the reputation of diesel vehicles. Consequently, car manufacturers across Europe have been gradually phasing out diesel models from their lineups in response to evolving consumer preferences and stricter emissions regulations.
This transition marks a significant shift in the European automotive landscape. In 2015, diesel cars comprised more than 50% of new car sales in Europe. However, as of July 2023, diesel vehicles represented just over 14% of total new car sales in the region.
Volvo’s commitment to discontinuing diesel production reflects the company’s determination to lead the way in sustainable transportation and embrace the electrification revolution that is reshaping the automotive industry. The move not only underscores Volvo’s dedication to reducing its environmental footprint but also positions the company as a pioneer among legacy automakers in the transition to electric mobility.