Volvo is phasing out diesel cars in favor of an all-electric future

Volvo’s last diesel-powered car will roll out next year as the Swedish automaker looks toward an all-electric future. As one of the first legacy automakers to do so, Volvo is rapidly transitioning its lineup with a full slate of EVs.

“There is no long-term future for cars with an internal combustion engine,” Henrick Green, Volvo’s chief technology officer, explained in March 2021.

Volvo was one of the first legacy automakers to announce its commitment to becoming an all-electric car company by 2030. By then, the Swedish automaker plans to sell only fully electric cars, phasing out ICE vehicles, including hybrids.

Former CEO Håkan Samuelsson explained over two years ago that to “remain successful, we need profitable growth.” Samuelsson added, “So instead of investing in a shrinking business, we choose to invest in the future – electric.”

Volvo reaffirmed its commitment to an all-electric future Tuesday, vowing to end production of diesel cars next year.

New CEO Jim Rowan explained, “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.”

The Swedish automaker declared at Climate Week NYC that its last diesel car will roll out by early 2024.

Volvo to end diesel car production as it goes all-electric

Volvo’s decision to end diesel car production shows how rapidly the auto industry and consumer preferences are transitioning.

“Only four years ago, the diesel engine was our bread and butter in Europe, as was the case for most other car makers,” the company stated.

Diesel-powered vehicles accounted for the majority of Volvo’s sales in 2019. Last year, just 8.9% of Volvo’s sales were from diesel, while fully electric or hybrid vehicles represented the majority.

Changing consumer preferences, tighter emissions regulations, and a new selection of advanced all-electric vehicles are driving the transition.

As a result, new diesel-powered vehicle sales have fallen from a 50% share of Europe’s total car sales in 2015 to just 14% in July (via Reuters).

Volvo’s currently all-electric models include the C40 Recharge and XC40 Recharge, starting at $55,300 and $53,550, respectively.

Meanwhile, the Swedish automaker is rolling out several new EVs that Volvo believes will accelerate sales further. Volvo revealed its flagship EX90 last November, a large seven-seater electric SUV with up to 300 miles range. Well-equipped, Volvo says it will start under $80,000.

Volvo followed it up with the EX30, its smallest and cheapest electric SUV to date. The EX30 is expected to start around $35,000 with up to 275 miles range. Deliveries are expected to begin next year with orders open in select markets.

The automaker hopes “to inspire other companies to be bolder in taking action against climate change through today’s announcement on diesels.”