Swedish automaker Volvo waves goodbye to diesel engine in its transition to 100% electric mobility. Come early 2024, the company will cease the production of diesel engines, marking the end of an era.
During Climate Week NYC, Volvo Cars made a groundbreaking announcement — the last diesel-powered Volvo car will roll off the assembly line in early 2024. This move aligns with Volvo’s ambitious roadmap to sell only fully electric cars by 2030 and to become a climate-neutral company by 2040.
The Financials: A Quick Look
- Diesel Dependency: As recently as 2019, a large portion of Volvo’s sales depended on diesel engines.
- Electric Surge: In 2022, diesel-powered Volvos accounted for only 8.9% of the automaker’s global sales.
- Electric & Hybrid Sales: In August, 33% of Volvo’s sales were either fully electric or hybrid models.
Volvo’s decision to phase out diesel cars is not a sudden impulse but a well-thought-out strategy. The company had already exited the development of new combustion engines last year and sold its stake in Aurobay, a joint venture that harbored all remaining combustion engine assets.
After diesel, the next step for Volvo is to phase out petrol engines. However, this is not expected to happen soon, as these models are still selling well.
This move was hardly a surprise. As far back as 2018, Hakan Samuelsson, the former CEO, stated that the company was fully focused on electric mobility and would not develop new diesel engines.
The current administration, led by Jim Rowan, has inherited this vision. It’s worth noting that Geely Holding Group, a major Chinese company, is the majority shareholder of Volvo. Both companies are committed to turning Volvo into a 100% electric automaker.
Rowan stated that, “Electric powertrains are our future, and superior to combustion engines.” The company is fully focused on creating a broad portfolio of premium, fully electric cars.
Also, Volvo’s decision resonates with the urgent need for action against climate change. The United Nations’ Global Climate Stocktake report has underlined the severity of the climate emergency faced by humanity. Volvo is committed to doing its part and encourages other industry and political leaders to do the same.