testVolvo Cars to stop developing new diesel engines

Volvo Cars to stop developing new diesel engines

BERLIN, May 17 (Reuters) – Swedish carmaker Volvo will not develop any new diesel engines as the cost of reducing emissions of nitrogen oxide is becoming too expensive, Chief Executive Hakan Samuelsson was quoted as saying on Wednesday.

“From today’s perspective, we will not develop any more new generation diesel engines,” Samuelsson told German’s Frankfurter Allgemeine Zeitung in an interview.

Samuelsson said Volvo would keep developing current diesel-powered models introduced in 2013 to meet future emissions standards, but then the costs of keeping them compliant with higher anti-pollution standards would no longer be worth it, with the current generation likely to be produced until about 2023.

Instead, Volvo will invest in the electric and hybrid cars, with its first pure electric model due on the market in 2019.

“We have to recognise that Tesla has managed to offer such a car for which people are lining up. In this area, there should also be space for us, with high quality and attractive design,” Samuelsson said. See full story