Death to fossil fuels: Volvo just made its last-ever car with diesel engine

As Volvo concentrates efforts to widen its EV lineup, it will also continue to manufacture petrol-powered cars even though the era for its diesel engi
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Volvo
File photo used for representational purpose. (Bloomberg)
Volvo
File photo used for representational purpose.

Volvo Car AB produced its last automobile with a diesel engine this week, ending an era for the manufacturer that plans to only make electric vehicles by 2030.

The XC90 sport utility vehicle rolled off the line at the Torslanda plant in Sweden on Tuesday evening. Volvo Car is phasing out the technology just as global demand for electric vehicles is cooling, though it’ll still make cars with gasoline engines.

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“We are quite confident that we have very good customer offers even without the diesel," Erik Severinson, a Volvo Car executive in charge of new cars and operations strategy, said in an interview.

Other automakers have been strategically noncommittal about when they expect to phase out combustion engines, and some have backtracked on EV targets. Mercedes-Benz Group AG last month pushed back its sales forecast for the technology, and now expects battery-powered vehicles to be stuck at less than half of its sales for longer than anticipated. Late last year, Audi said it’s paring back its EV rollout.

Also Read : Volvo believes EV adoption in luxury segment to be faster than in mass market

In 2017, Volvo Car became the first major automaker to commit to phasing out vehicles powered solely by fossil fuels and has since introduced several hybrid and fully electric models. In the brand’s main market Europe, diesel cars peaked nine years ago, at around half of new sales. They slumped to 14% of registrations last year.

The XC90 was key to the carmaker’s revival starting in 2014, when it was unveiled as the first car built on new underpinnings developed under the stewardship of Geely’s Li Shufu. Volvo Car will display the last XC90 made at a Volvo museum opening next month in Gothenburg. The top-line SUV has an electric sibling, the EX90.

Volvo EX90
Volvo EX90 SUV is the electric avatar of the ICE model XC90. It comes with advanced LiDAR technology that makes the EV the safest in Volvo's fleet.
Volvo EX90
Volvo EX90 SUV is the electric avatar of the ICE model XC90. It comes with advanced LiDAR technology that makes the EV the safest in Volvo's fleet.

Marketed by Europe’s automakers as a cleaner alternative to gasoline, diesel had a successful run in the early years of the century. But demand cratered after Volkswagen AG admitted in 2015 that it fitted its diesel engines with software to cheat on emissions tests.

While Volvo Car will continue to support its diesel customers and offer spare parts, it’s not slowing on EVs as the technology still offers more growth in the long term, Severinson said. “We believe our customers see the same kind of transition to green mobility as we do," he said.

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First Published Date: 27 Mar 2024, 13:26 PM IST
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