Dive Brief:
- Volvo Cars will end production of all diesel-powered vehicles by early 2024, becoming one of the first legacy automakers to do so, the company said Tuesday.
- Rapid changes in consumer demand for electric vehicles and stricter vehicle emissions regulations drove the decision, the automaker said.
- Volvo plans to become an all-electric automaker by 2030 and will produce its last diesel-engine vehicles this fall.
Dive Insight:
Volvo is taking another significant step in its EV transition. Last November, the automaker divested its 33% stake in Geely powertrain unit Aurobay. It stopped investing in internal combustion engine development to focus more on electrification in the upcoming years.
“Electric powertrains are our future, and superior to combustion engines: they generate less noise, less vibration, less servicing costs for our customers and zero tailpipe emissions,” Volvo Cars President and CEO Jim Rowan said in a statement.
Volvo says that four years ago, diesel-powered vehicles were its “bread and butter” in Europe, but now most of its vehicle sales in Europe are hybrid or fully-electric models. Although Europe remains the biggest market for Volvo’s diesel-powered vehicles, sales have fallen by over half globally from 2020 to 2022, from 19.4% to 8.8% of all vehicles sold, the company said in an email.
The automaker announced the decision at Climate Week NYC, an annual event hosted by international non-profit Climate Group in New York City. The event, which is in partnership with the United Nations General Assembly, brings together senior leaders from business, government, civil society and the climate sector to drive actions related to climate initiatives.
Volvo aims to phase out all internal combustion engine vehicles globally, including hybrids, by 2030. The automaker wants EVs to make up half its vehicle sales by mid-decade; the other 50% will be hybrids, the company says.
Following the debut of the flagship EX90 electric SUV, the automaker plans to unveil a new EV each year. Reservations are open in the U.S. for Volvo’s forthcoming EV, the compact EX30 SUV. The first deliveries are expected to begin in summer 2024.
