Major car brand to stop making new diesel vehicles within months to focus on EVs

Larger Volvo models have proved incredibly popular amongst drivers with diesel models like the XC90 and XC60 being particular favourites.

The Swedish carmaker says it will push ahead with plans to only sell fully electric models by the end of the decade and become a climate-neutral company by 2040.

Announcing the change at Climate Week New York City, the brand said it would no longer “spend a single krona” of its research and development budget on new internal combustion engine vehicles.

Jim Rowan, chief executive of Volvo Cars, said: “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.

“We’re fully focused on creating a broad portfolio of premium, fully electric cars that deliver on everything our customers expect from a Volvo – and are a key part of our response to climate change.

“It is high time for industry and political leaders to be strong and decisive, and deliver meaningful policies and actions to fight climate change.

“We’re committed to doing our part and encourage our peers as well as political leaders around the globe to do theirs.”

In November 2022, Volvo sold its stake in Aurobay, the company which harboured all of the remaining combustion engine assets.

The brand also recently announced it would only be selling electric cars and SUVs in the UK, ending its history of manufacturing estate and saloon cars.

Volvo has already removed the popular V60, S60 and larger V90 models from its UK website.

The decision to end the production of estate and saloon cars was to focus on its growing range of electric cars and SUVs, which are both growing in popularity.

The Volvo Car Corporation also has a 49.5 per cent stake in Polestar and 30 per cent of growing Chinese-Swedish electric car brand Lynk & Co.

Polestar is aiming to make the first-ever carbon neutral car by the end of the decade, by reducing all greenhouse gas emissions from every aspect of production.

It aims to be carbon neutral from the conception of the vehicle through to the delivery of the vehicle to the customer.

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The Gothenburg-based manufacturer has called the plan a “moonshot” idea, but it will be looking to finalise a complete supply chain for high-volume production between 2027 and 2030.