Volvo Cars will end of production of all diesel-powered Volvo Car models by early 2024. 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.
This milestone follows the company’s decision last year to exit the development of new combustion engines. In November of 2022, Volvo Cars sold its stake in Aurobay, the joint venture company that harbored all of the remaining combustion engine assets. None of Volvo’s R&D budget is supporting developing new internal combustion engines.
By 2030 Volvo Cars plans to sell only fully electric cars and by 2040 aims to be a climate neutral company.
Our decision to phase out diesels completely by early 2024 illustrates how rapidly both the car industry and customer demand are changing. The majority of cars Volvo Cars sold in Europe in 2019 were powered by a diesel engine, while electrified models were only just beginning to make their mark.
That trend has largely inverted itself since then, driven by changing market demand, tighter emission regulations as well as the company’s focus on electrification. The majority of Volvo sales in Europe now consists of electrified cars, with either a fully electric or plug-in hybrid powertrain.